legal Definition of Commodity Futures Trading Commission
independent government agency established in 1974 to regulate trading in futures. The CFTC, made up of five commissioners appointed by the president and approved by the Senate, works to ensure that trading on the 11 U.S. futures exchanges is fair and that the integrity of the marketplace is preserved. To that end it monitors trading, registers brokers, reviews contracts, audits records and bank accounts, investigates fraud, adjudicates customer complaints, engages in market analysis, and exercises enforcement authority. In response to the 2008 financial crisis, the agency was charged with reforming and overseeing the swaps market. No more than three of the agency's five members may belong to the same political party.
