commodity futures trading commission
(CFTC) of the commodity futures trading commission: as the Commodity Futures Trading Commission guarantees the reliability of a broker?
The CFTC (commodity futures trading commission), the so - called one of the most authoritative in the world among brokers Forex and futures - the Commodity Futures Trading Commission, created by Congress in 1974. It is an independent government Agency, which has been granted the right to regulate the markets options and futures.
The activities of the commodity futures trading commission (CFTC) is aimed at protecting the economic integrity of the futures markets of the United States of America, as well as strengthening their efficiency and ensuring economic utility. Objectives of the commodity futures trading commission - strengthening of business integrity, the protection of market participants and citizens from fraud, manipulation and abuse, which are connected with the sale of the commodity and financial options and futures, promote compliance with the principles of openness and competitiveness of the financial and derivatives markets, the support of the financial perfection clearing processes. Brokers who have received registration of the CFTC, should comply strictly with the regulations of the Commission, as well as to adhere to the rules of the stock exchanges, the members of which are. The violations of the norms entail fines, withdrawal or suspension of trade privileges, up to cancellation of the account.
Some of the requirements of the commodity futures trading commission (CFTC)
All individuals and firms that conduct business on any of the futures exchange in the United States, are required to register with the Commission. The registration procedure is conducted through the NFA, the National Futures Association.
The right to conclude a contract for brokerage services with clients and accumulation of their funds have only a so-called index - Futures Commission Merchants. In this case they are obliged to guarantee all customer transactions.
An FCM must place the customer at separately generated accounts, independent of their own.
The minimum net capital of FCM must be supported by 4% of the amount of customer accounts, which are available on the generated accounts. The indicators such as receivables, is not taken into account. Accordingly, increases the value of net capital. The reason for the daily supervision and proceedings may become a net capital, close to 6%.
Translation of client accounts shall be conducted daily at the end of the trading day, to the current balance was adjusted. But the rules on reporting, designed to prevent fraud, manipulation and abuse, are not limited to.
on the activity in the accounts of investors, the latter should immediately come information in writing (with the help of common positions or by e-mail). In the absence of activity of the client are obliged to send a report on the results of the month.
Persons registered with the commodity futures trading commission (CFTF), should warn about market risk. Prospective clients are provided with information on the results of the previous work.
Periodically conducts licensing examinations, as well as ethics training, which are binding for all persons, registered with the commodity futures trading commission.
The company, registered with the CFTC, are obliged to carry out the internal control over employees, as well as to offer their services with the help of ethical methods.
The most important of the laws adopted by the Commodity Futures Trading Commission
The law on combating money laundering
Regulatory standards and procedures
The law on commodity exchanges
The law on modernization of the commodity futures 2000.
It is worth noting that among brokers registered with the CFTC, were such as FXCM and OANDA, GFT.
The results of the work referred to brokerage firms have the highest ratings. As a result, they are members of the Supreme League of the ranking of brokers and DC.
This broker license, as well as the two other most authoritative Dealing license in the world NFA and FSA, has the highest 70 points in the ranking of brokers Forex.
