What is the meaning of CFTC?
Commodity Futures Trading Commission
Commodity Futures Trading Commission. CFTC: The Federal regulatory agency established by the Commodity Futures Trading Act of 1974 to administer the Commodity Exchange Act.
What are the categories outlined by the CFTC?
The Disaggregated COT report increases transparency from the legacy COT reports by separating traders into the following four categories of traders: Producer/Merchant/Processor/User; Swap Dealers; Managed Money; and Other Reportables.
Does CFTC regulate Bitcoin?
With reference to the CFTC clarification, this means that while Bitcoin (BTC) is an underlying asset, the job of the regulator isn’t to regulate the Bitcoin industry. Rather, it is to regulate the derivatives contracts being traded in relation to Bitcoin.
What is a hedge exemption?
Hedge Exemption: An exemption from speculative position limits for bona fide hedgers and certain other persons who meet the requirements of exchange and CFTC rules.
How does the CFTC work?
The mission of the Commodity Futures Trading Commission is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation. In carrying out this mission, the Commission polices the derivatives markets for various abuses and works to ensure the protection of customer funds.
What swaps does the CFTC regulate?
It includes, for example, interest rate swaps, commodity swaps, currency swaps, equity swaps and credit default swaps.
How do you read a CFTC report?
Position Categories
- Long – This is the number of traders that are long the market.
- Short – This is the number of traders that are short the market.
- Spreading – This represents the number of offsetting positions in a particular trader category. **Long and short represent any remaining positions after offsetting.
What does the CFTC regulate?
CFTC Overview The Commodity Futures Trading Commission is an independent U.S. government agency that regulates the U.S. derivatives markets, including futures, options, and swaps.
Is Bitcoin backed by real money?
Cryptocurrency is virtual money based on software. When you purchase cryptocurrency, you purchase a digital asset based on an algorithm. Unlike centralized currency, which is government controlled, cryptocurrency is decentralized. Its value is controlled by the network based on supply and demand.
What is a bona fide hedge?
Bona fide hedging transactions and positions for the purposes of this paragraph mean any of the following specific transactions and positions: (i) Sales of Referenced Contracts that do not exceed in quantity: (A) Ownership or fixed-price purchase of the contract’s underlying cash commodity by the same person; and.
How do Hedges work?
Hedging is a risk management strategy employed to offset losses in investments by taking an opposite position in a related asset. The reduction in risk provided by hedging also typically results in a reduction in potential profits. Hedging strategies typically involve derivatives, such as options and futures contracts.
What kind of markets does the CFTC regulate?
The CFTC regulates the U.S. derivatives markets. This includes commodity futures and options markets as well as over-the-counter (OTC) markets.
What kind of agency is the commodity futures trading commission?
What is the ‘Commodity Futures Trading Commission – CFTC’. The Commodity Futures Trading Commission (CFTC) is an independent U.S. federal agency established by the Commodity Futures Trading Commission Act of 1974. The Commodity Futures Trading Commission regulates the commodity futures and options markets.
What are the different divisions of the CFTC?
The CFTC organization consists of the offices of the Chairman and Commissioners as well as the agency’s 13 operating divisions and offices. 6 Let’s take a look at five of the main divisions of the CFTC: Division of Clearing and Risk, Market Participants Division, Division of Market Oversight, Division of Data, and the Division of Enforcement.
What do you need to know about the CFTC whistleblower program?
The CFTC’s Whistleblower Program provides monetary incentives to individuals who report possible violations of the Commodity Exchange Act that lead to successful enforcement action, as well as, privacy, confidentiality, and anti-retaliation protections for whistleblowers who share information with or assist the CFTC.