What is the American Commodity Futures Trading Commission?CFTC

CFTC( American Commodity Futures Trading Commission) It is an independent federal institution.The full English name is the Commodity Futures Trading Commission.It was founded by the US Congress in 1974.Its main responsibility is to supervise the American commodity futures and options markets.

The main goals of CFTC include: protecting market users and the public from fraud, manipulation, and other harmful behaviors; encourage public, competitive and financial health markets; and protect the integrity of the market.

If US stock investors hold commodity futures, options or derivatives in their investment portfolios, CFTC’s decision-making and regulatory actions will directly affect their investment performance.

CFTC also supervises some derivatives related to the stock market, such as stock index futures and stock index options.Therefore, even if investors only invest in stocks, they need to pay attention to CFTC.

CFTC also issued some reports, such as “Community of Traders” report, which provides investors with in-depth information in the futures market to help investors make more wise investment decisions.

Directory of this article

What is CFTC?
What are the organizational structure and responsibilities of CFTC?
How does CFTC affect the futures and derivative markets?
What important investment reports CFTC does CFTC provide?
More investment foundation

What is CFTC?

The official website of CFTC is: cftc.gov Then, then

CFTC was founded by the 1974 Commodity Futures Trading Commission Act, which provides comprehensive federal supervision for futures transactions.

Due to the continuous expansion of the complexity and scale of commodity transactions, CFTC has emerged as a special independent institution to solve problems and challenges in the field of commodity transactions.

Since its establishment, CFTC has been continuously developing and reforming to meet the changes and needs of the financial market.For example, the Commodity Futures Modernization Act in 2000 has modified CFTC’s power and responsibilities, including supervision of off-site derivatives transactions.

The main mission of CFTC is to promote public, transparent, transparent, competitive and financially healthy commodity futures and options markets through effective supervision.

In order to achieve this mission, CFTC’s main responsibilities include acts that prevent fraud, manipulation, and other destruction of market integrity, and protect the interests of market participants and the public.At the same time, all transaction participants are required to be disclosed and transparent.

In addition, CFTC is also responsible for supervision and approval of new trading products to ensure that they meet the standards of fairness and transparency.

CFTC supervises all futures and options contracts traded in the United States, including agricultural products, metals, energy and financial derivatives.

CFTC can ensure the fairness and transparency of the market by formulating and implementing rules, prevent fraud and manipulation.

As part of the supervision tool, CFTC also has the right to investigate market participants, including transactions and positions of large dealers to maintain market integrity.

What are the organizational structure and responsibilities of CFTC?

CFTC is composed of five members nominated by the president and confirmed by the Senate, including a chairman.The term of each member is five years, and the term of office is staggered to ensure continuity.There must be no more than three members from the same party.

The structure of CFTC is divided into multiple departments and offices, including market supervision, law enforcement, product assessment and market supervision, management and budget, international affairs, customer education and outbound exchanges, economic and legal consultants, etc.

The key departments of CFTC are mainly:

Market Supervision Department: Responsible for supervising and adjusting all futures and dealers to ensure that they comply with CFTC regulations.
Law Enforcement Department: Responsible for investigating and prosecution of fraud, manipulation and other violations.
Product assessment and market supervision department: Responsible for reviewing new trading products and trading rules, as well as the trading behavior of market data and large dealers.
Customer education and outflow departments: responsible for providing information and resources related to the public and market participants.

CFTC’s decision-making process is generally held at the public committee meeting, including discussions, voting and announced decisions.

The decision-making process is bound by the Administrative Procedure Act, which needs to follow the principles of openness, justice and fairness.

When formulating new rules or amending existing rules, CFTC will publicly solicit public opinions and review and adjust according to the feedback received.

How does CFTC affect the futures and derivative markets?

CFTC provides the market’s openness, fairness and transparency through supervision of futures and derivatives markets, providing investors with a safe trading environment.

CFTC’s regulations and regulations can affect the price, liquidity and transaction volume of futures and derivatives, and then affect investors’ investment decisions.

CFTC regularly releases a series of reports, including the Commissions of Traders Report (Cot Report) and positioning data.Investors can understand the latest market situations and trends through these reports.

CFTC’s announcement and news release also include many useful information, such as new rules and guidance, as well as major law enforcement activities.Investors should pay close attention to this information, and understand and adapt to changes in the market in time.

What important investment reports CFTC does CFTC provide?

Community of traders report

CFTC releases every week COT report(( Commartments of traders), These reports provide the positioning data of futures and options markets, including the positions of large merchants and small businesses.

You can find these reports through the “Market Data & Economic Analysis” part on the CFTC website.

The COT (COTMITMENTS of Traders) report is a report issued by the US Commodity Futures Commission (CFTC) every week, which detailed the position of the open contract for futures and options markets.COT reports are widely used by global investors, economists and policy makers to evaluate market sentiment and possible price trends.

The COT report is mainly divided into three categories: commercial participants (usually considered heders in the futures market, they have physical or cash in the spot market, use futures contracts for risk management), non-commercial participants (generally are generally subject to being being subject to risk management) (generally are generally being subject to being being subject to futures contracts) (generally are generally being subject to being subject to risk).It is regarded as a large investor or “big shark”, such as hedge funds, institutional investors, etc., they do not have a product, but seek profit in the futures market) and small investors (usually regarded as retail investors).

The COT report provides the number of investors in various commodity futures and options contracts.It includes information such as multi-opening and short contracts, unsupering contracts, and changes.

These data can help investors understand the market’s emotions and trends.For example, if the multi-position holding of commercial participants increases, this may mean that they expect the future prices to rise.On the contrary, if the short position of non-commercial participants increases, this may indicate that they expect future prices to fall.

Traders in Financial Futures (TFF) report

Raders in Financial Futures (TFF) report provides detailed information about the financial futures contract market.These reports are widely used by global investors, economists and policy makers to evaluate market sentiment and possible price trends.

The TFF report has classified more detailed classification of participants in the financial futures contract market, including brokers/dealers, asset management/institutional investors, leveraged funds, etc.The main difference between the TFF report and COT (Commissions of Traders) is that the TFF report emphasizes the holding data of financial futures (such as currency, interest rates, and stock index futures).

The following are some of the main data contained in the TFF report:

Report level open interest rate: The total open interest rate of each type of report.
The bulls and short positions of brokers/traders: These investors mainly include large global commercial banks and securities brokers.
Asset manager/institutional investor’s bulls and short positions: Such investors usually include large institutions such as pension funds, mainland funds, trust funds, insurance companies.
The bulls and short positions of the leverage fund: Such investors usually include hedge funds and other reporters, these investors use leverage strategies.

BANK Participation Report (BPR) Report

The Bank Participation Report (BPR) issued by the American Commodity Futures Commission is a monthly report, which detailed the positions of the United States and non -American banks in major futures and options markets.

The following are some of the main information contained in the BPR report:

Report level open interest rate: It means the total interest rate of the bank’s open interest rate, which is the total number of futures and options of banks.
Holding information of various products：包括了美元指数、欧元、日元、英镑、瑞士法郎、加拿大元、澳元、新西兰元、巴西��亚尔、墨西哥比索、南非兰特、黄金、白银、白糖、咖啡、玉米、小麦、Soy, fuel oil, natural gas and other types of commodity futures and options.
PMS data of the United States and non -American banks: This report distinguishes the United States and non -American banks, and gives the positions of these two types of banks, so that investors can better understand the global banks’ activities in futures and options markets.

Through the BPR report, you can understand the activities of banks in futures and options markets, which is very helpful for evaluating market sentiment, risk preferences, and possible price trends.

For example, if the bulls of large banks increase, this may mean that they expect the future prices to rise.On the contrary, if the short position of large banks increases, this may indicate that they expect future prices to fall.

Cotton On-Call (COC) report

The Cotton On-Call (COC) report is a weekly report released by the US Commodity Futures Trading Commission (CFTC), which mainly provides detailed information about cotton futures and options.

The COC report can help investors, traders, and analysts understand the changes in supply and demand that may occur in the market in the future, thereby predicting the future trend of cotton prices.

The following are some of the main data generally contained in the COC report:

Report date: The report was released at 3:30 pm on the Eastern time every Friday, and the data ended on Thursday the previous week.
The number of positions to be settled by options and futures: Including the number of warehouses and changes from the buyer and the seller.
To be settled in different cut months: The report will also list the number of positions to be held in accordance with different settlement months, such as March, May, July, October, and December.

The COC report is an important tool in the cotton market.It provides market participants’ expectations for the future trend of cotton prices.Therefore, these data are very important for cotton producers, consumers, and investors.

Swap Dealer Reports (SDR) Report

The Swap Dealer Reports (SDR) released by the American Commodity Futures Trading Commission (CFTC) provides positioning information about Swap Dealer (SD) and Major Swap Participant (MSP) in the derivative market.These reports provide important transparency for investors in futures and options markets.

The following are some of the main data generally contained in the SDR report:

Report date: This is the time point for the report, usually once a week.
Open interest rate: That is, the total number of unable to close contracts on a specific delivery date.
Position distribution: The report details the number of Swap Dealer (SD) and Major Swap Participant (MSP).
Hold the position change: The report also includes changes in positions since the previous report date.
Product Types: SDR reports cover a variety of commodities, including agricultural products, energy, metal, interest rates, foreign exchange, etc.

The purpose of the SDR report is to provide market transparency and help investors understand the behavior of futures and options markets.They provide a framework that allows market participants to evaluate trading activities and price trends, which is essential for investment decisions.