Financial regulation in the United States

Dodd-Frank Act

Federal Reserve

Financial regulation by state

Key terms

Commercial bank •Credit union •Depository institution •Financial system •Investment banking •Securities

Hover over the above terms for definitions.

TheCommodity Futures Trading Commission is an independent government agency responsible for the regulation of futures and option markets. Established in 1974, markets regulated by the commission include commodities (e.g., crude oil and gold), as well as financial products.^[1]

Background

Key terms

The following is a list ofkey terms relevant to the activities of the Commodity Futures Trading Commission:

• Futures contract: Also called futures, futures contracts are agreements to buy or sell a commodity or commodities at some point in the future.^[2]
• Option: An option, according to Investopedia, is a "financial derivative that represents a contract sold by one party (the option writer) to another party (the option holder). The contract offers the buyer the right, but not the obligation, to buy or sell a security or other financial asset an an agreed-upon price during a certain period of time or on a specific date."^[3]

History

The Commodity Futures Trading Commission (CFTC) was created in 1974 as part of the Commodity Futures Trading Commission Act of 1974. The CFTC replaced the Commodity Exchange Authority, a division of theDepartment of Agriculture. The act created the CFTC as an independent agency responsible for regulating the commodity futures and option market. The CFTC's authority was expanded in December 2000 with the passage of the Commodity Futures Modernization Act of 2000, an act requiring theSecurities and Exchange Commission and the CFTC to develop regulations for single-stock futures. The passage of theDodd-Frank Act in 2010 expanded the CFTC's authority into swap markets.^[1]

Organization

Administrative State
Read more about theadministrative state on Ballotpedia.

The CFTC consists of five commissioners, who are appointed by the President with the advice and consent of theUnited States Senate. The commissioners serve five-year terms. The President, with the advice and consent of the Senate, appoints one of these commissioners to serve as the chair. No more than three members can belong to the same political party.^[4]

The CFTC comprises several divisions with differing responsibilities. The Division of Clearing and Risk oversees derivatives clearing organizations. The Division of Enforcement investigates and prosecutes alleged violations of CFTC regulations and the Commodity Exchange Act. The Division of Market Oversight is responsible for ensuring that the derivatives market is free of disruptive activity. The Division of Swap Dealer and Intermediary Oversight registers and oversees intermediaries and futures industry self-regulatory organizations.^[4]

Authority and responsibilities

The CFTC has regulatory authority over the futures markets. The CFTC may set rules to prevent market manipulation, fraud, or other abusive trading practices. The CFTC sets capital standards for new firms trading in the market, but does not otherwise oversee individual firms.^[1]

See also

• Financial Stability Oversight Council
• Securities and Exchange Commission

External links

• Commodity Futures Trading Commission

Footnotes

v • e U.S. Executive Branch Elected offices PresidentDonald Trump • Vice PresidentJ.D. Vance •Donald Trump presidential administration (second term) Executive Office of the President White House Press Secretary •Trump White House staff (second term) •Department of Government Efficiency •Office of Information and Regulatory Affairs •Office of Management and Budget Executive departments Department of Defense •Department of State •Department of Homeland Security •Department of Justice •Department of Commerce •Department of Education •Department of the Treasury •Department of Agriculture •Department of Energy •Department of Labor •Department of Transportation •Department of the Interior •Department of Health and Human Services •Department of Veterans Affairs •Department of Housing and Urban Development Cabinet-level agencies Environmental Protection Agency •Office of Management and Budget •U.S. Mission to the United Nations • Council of Economic Advisors •Small Business Administration •White House Chief of Staff •Central Intelligence Agency Department of Agriculture Forest Service Department of Defense Federal Voting Assistance Program (FVAP) •National Security Agency Department of Education Institute of Education Sciences •National Center for Education Statistics Department of Energy Energy Information Administration Department of Health and Human Services Agency for Healthcare Research and Quality •Agency for Toxic Substances and Disease Registry •Centers for Disease Control and Prevention •Centers for Medicare and Medicaid Services •Food and Drug Administration Department of Homeland Security Citizenship and Immigration Services •Customs and Border Protection •Immigration and Customs Enforcement •Transportation Security Administration Department of the Interior Bureau of Land Management •Fish and Wildlife Service •Geological Survey •National Park Service Department of Justice Federal Bureau of Investigation •Bureau of Alcohol, Tobacco, Firearms and Explosives •Drug Enforcement Administration Department of Labor Occupational Safety and Health Administration •Office of Federal Contract Compliance Programs •Office of Foreign Labor Certification Department of the Treasury Federal Insurance Office •Financial Stability Oversight Council •Internal Revenue Service •Office of Financial Research Department of Veterans Affairs Board of Veterans' Appeals (VA) Independent agencies Administrative Conference of the United States •Agency for Global Media •Chemical Safety Board •Commodity Futures Trading Commission •Consumer Financial Protection Bureau •Consumer Product Safety Commission •Corporation for National Community Service •Corporation for Public Broadcasting •Defense Nuclear Facilities Safety Board •Equal Employment Opportunity Commission •Export-Import Bank of the United States •Farm Credit Administration •Federal Communications Commission •Federal Deposit Insurance Corporation •Federal Election Commission •Federal Energy Regulatory Commission •Federal Housing Finance Agency •Federal Labor Relations Authority •Federal Maritime Commission •Federal Mine Safety and Health Review Commission •Federal Reserve System •Federal Trade Commission •General Services Administration •Government Accountability Office •Interstate Commerce Commission •Merit Systems Protection Board •National Credit Union Administration •National Labor Relations Board •Office of Personnel Management •Securities and Exchange Commission •Securities Investor Protection Corporation •Social Security Administration •United States Postal Service Dissolved agencies Civil Service Commission •National Recovery Administration •Steamboat Inspection Service Glossary Appointment confirmation process •United States Constitution •Electoral College •Impeachment of federal officials

v • e The Administrative State Main The Administrative State Project main page •Administrative State Project Index •Glossary of administrative state terms •Quotes about the administrative state •Administrative state •Rulemaking •Deference •Adjudication •Nondelegation doctrine •Ballotpedia's administrative state legislation tracker Pillars Agency control •Executive control •Judicial control •Legislative control •Public control Reporting Changes to the Federal Register •Completed OIRA review of federal administrative agency rules •Federal agency rules repealed under the Congressional Review Act •Historical additions to the Federal Register, 1936-2016 Laws Administrative Procedure Act •Antiquities Act •Civil Service Reform Act •Clayton Antitrust Act •Communications Act of 1934 •Congressional Review Act •Electronic Freedom of Information Act •Federal Food, Drug, and Cosmetic Act of 1938 •Federal Housekeeping Statute •Federal Reserve Act •Federal Trade Commission Act of 1914 •Freedom of Information Act •Government in the Sunshine Act •Independent Offices Appropriations Act of 1952 •Information Quality Act •Interstate Commerce Act •National Labor Relations Act •Paperwork Reduction Act •Pendleton Act •Privacy Act of 1974 •Regulatory Flexibility Act •REINS Act •REINS Act (Wisconsin) •Securities Act of 1933 •Securities Exchange Act of 1934 •Sherman Antitrust Act •Small Business Regulatory Enforcement Fairness Act •Truth in Regulating Act •Unfunded Mandates Reform Act Cases Abbott Laboratories v. Gardner •A.L.A. Schechter Poultry Corp. v. United States •Association of Data Processing Service Organizations v. Camp •Auer v. Robbins •Chevron v. Natural Resources Defense Council •Citizens to Preserve Overton Park v. Volpe •Federal Trade Commission (FTC) v. Standard Oil Company of California •Field v. Clark •Food and Drug Administration v. Brown and Williamson Tobacco Corporation •Humphrey's Executor v. United States •Immigration and Naturalization Service (INS) v. Chadha •J.W. Hampton Jr. & Company v. United States •Lucia v. SEC •Marshall v. Barlow's •Massachusetts v. Environmental Protection Agency •Mistretta v. United States •National Federation of Independent Business (NFIB) v. Sebelius •National Labor Relations Board v. Noel Canning Company •National Labor Relations Board v. Sears, Roebuck & Co. •Panama Refining Co. v. Ryan •Securities and Exchange Commission v. Chenery Corporation •Skidmore v. Swift & Co. •United States v. Lopez •United States v. Western Pacific Railroad Co. •Universal Camera Corporation v. National Labor Relations Board •Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council •Wayman v. Southard •Weyerhaeuser Company v. United States Fish and Wildlife Service •Whitman v. American Trucking Associations •Wickard v. Filburn •Wiener v. United States Terms Adjudication (administrative state) •Administrative judge •Administrative law •Administrative law judge •Administrative state •Arbitrary-or-capricious test •Auer deference •Barrier to entry •Bootleggers and Baptists •Chevron deference (doctrine) •Civil servant •Civil service •Code of Federal Regulations •Codify (administrative state) •Comment period •Compliance costs •Congressional Record •Coordination (administrative state) •Deference (administrative state) •Direct and indirect costs (administrative state) •Enabling statute •Ex parte communication (administrative state) •Executive agency •Federal law •Federal Register •Federalism •Final rule •Formal rulemaking •Formalism (law) •Functionalism (law) •Guidance (administrative state) •Hybrid rulemaking •Incorporation by reference •Independent federal agency •Informal rulemaking •Joint resolution of disapproval (administrative state) •Major rule •Negotiated rulemaking •Nondelegation doctrine •OIRA prompt letter •Organic statute •Pragmatism (law) •Precautionary principle •Promulgate •Proposed rule •Publication rulemaking •Regulatory budget •Regulatory capture •Regulatory dark matter •Regulatory impact analysis •Regulatory policy officer •Regulatory reform officer •Regulatory review •Rent seeking •Retrospective regulatory review •Risk assessment (administrative state) •Rulemaking •Separation of powers •Significant regulatory action •Skidmore deference •Statutory authority •Substantive law and procedural law •Sue and settle •Sunset provision •Unified Agenda of Federal Regulatory and Deregulatory Actions •United States Code •United States Statutes at Large Bibliography "Administrative Law - The 20th Century Bequeaths an 'Illegitimate Exotic' in Full and Terrifying Flower" by Stephen P. Dresch (2000) "Confronting the Administrative Threat" by Philip Hamburger and Tony Mills (2017) "Constitutionalism after the New Deal" by Cass R. Sunstein (1987) Federalist No. 23 by Alexander Hamilton (1787) "From Administrative State to Constitutional Government" by Joseph Postell (2012) "Interring the Nondelegation Doctrine" by Eric A. Posner and Adrian Vermeule (2002) "Rulemaking as Legislating" by Kathryn Watts (2015) "The Checks & Balances of the Regulatory State" by Paul R. Verkuil (2016) "The Myth of the Nondelegation Doctrine" by Keith E. Whittington and Jason Iuliano (2017) "The Progressive Origins of the Administrative State: Wilson, Goodnow, and Landis" by Ronald J. Pestritto (2007) "The Rise and Rise of the Administrative State" by Gary Lawson (1994) "The Study of Administration" by Woodrow Wilson (1887) "The Threat to Liberty" by Steven F. Hayward (2017) "Why the Modern Administrative State Is Inconsistent with the Rule of Law" by Richard A. Epstein (2008) Agencies Administrative Conference of the United States •United States Civil Service Commission •U.S. Government Accountability Office •U.S. Office of Information and Regulatory Affairs •U.S. Office of Management and Budget