CFTC (Commodity Futures Trading Committee) – this title is for one of the most respected in the world of Forex brokers and futures - Commission on Commodity Futures Trading, established by Congress in 1974. It is an independent government agency that has been granted the right to adjust the options and futures markets.
CFTC activity aimed at protecting the economic integrity of the futures markets of the United States, as well as increasing their efficiency, economic utility. Objectives of the Commission - to strengthen business integrity, protect market participants and the citizens from fraud, manipulation and abuse, which are related to the sale of commodity and financial futures and options, promotion of the principles of transparency and competitiveness of the financial and option markets, support the financial integrity of clearing processes. Brokers who register with the CFTC, must strictly observe regulatory rules committee, as well as adhere to the rules of exchanges. Violations result in fines, suspension or withdrawal of trade privileges, up to the cancellation of the exchange account.
Some of the requirements of CFTC
- All individuals and companies that do business on any futures exchange in the United States has to register with the Commission. The registration procedure is conducted through the NFA - National Futures Association.
- Right to make the brokerage services to customers and the accumulation of cash are only so-called FCM - Futures Commission Merchants. However, they must ensure that all transactions of clients.
- FCM must place customer accounts separate segregated accounts, regardless of ownership.
- The minimum net worth must be maintained FCM 4% of the client accounts that are placed on the generated accounts. In this case, an indicator such as accounts receivable, is not considered. Accordingly, increases the value of net capital. The reason for the daily supervision and litigation could become a net worth approaching 6%.
- Recalculation of client accounts must be held daily at the end of the trading day to the current balance was adjusted. But these rules on reporting, designed to prevent fraud, manipulation and abuse, not limited.
- the activity in the accounts of investors must come immediately latest information in writing (using the usual office or via e-mail). In the absence of active clients are required to send a report on the results of the every month.
- Persons registered in CFTF, to warn about market risk. Prospective clients are given information about the results of past work.
- Periodically hold licensing exams, as well as training the ethical norms that are binding on all persons registered with the Commission.
- Companies registered in CFTC, must carry out internal control over employees, and offer their services using ethical methods.
The most important of the laws adopted by the Commission on the Commodity Futures Trading
- The Anti-Money Laundering
- Regulatory policies and procedures
- Act of commodity exchange
- Law the Commodity Futures Modernization 2000
It is worth noting that among the brokers registered with CFTC, including such as FXCM , OANDA (Oanda) , GFT.
The results of the mentioned brokerage companies have high ratings. As a result, they are members of the league rankings brokers and DC.
This broker license, as well as two other most influential in the world Dealing license NFA and FSA , has the highest rating of 70 points brokers Forex.
