The Commodity Futures Trading Commission (CFTC) is an independent U.S. federal agency established in 1974 to regulate the derivatives markets, including futures, options, and swaps. Originally focused on agricultural commodities under the Commodity Exchange Authority (CEA), its role expanded as financial markets grew more complex.

The CFTC’s mission is to ensure open, transparent, competitive, and financially sound markets while protecting investors and the public from fraud, manipulation, and abusive practices. It also works to mitigate systemic risk in the derivatives sector.

The agency shares responsibilities with the Securities and Exchange Commission (SEC), particularly in preventing market manipulation and fraudulent schemes. Programs like the CFTC Whistleblower Program, which has awarded tens of millions since 2014, encourage reporting of illegal activities.

Following the 2008 financial crisis, the Dodd-Frank Act expanded the CFTC’s authority, especially over large derivatives traders. Today, it operates through divisions such as Enforcement, Market Oversight, Clearing and Risk, and the Office of the Whistleblower, making it a cornerstone regulator of U.S. financial markets.