Which regulator regulates futures and options markets?

Which regulator regulates futures and options markets?

• A. Commodity Futures Trading Commission (CFTC)
• B. Financial Industry Regulatory Authority (FINRA)
• C. Office of the Comptroller of the Currency (OCC)
• D. Federal Deposit Insurance Corporation (FDIC)

Answer: (A)

Futures and options markets are overseen by the Commodity Futures Trading Commission. The CFTC’s job is to keep these derivatives markets fair, open, and financially sound by regulating exchanges and clearinghouses, policing market participants like brokers and firms, and enforcing rules against fraud and manipulation. It also sets and enforces requirements on margin, capital, and conduct to reduce systemic risk. While the CFTC handles futures and options on futures, other regulators focus on different parts of finance: FINRA oversees securities firms and stock-related activities, OCC regulates banks, and the FDIC insures bank deposits. This question targets futures and options markets, so the regulator is the CFTC.

Futures and options markets are overseen by the Commodity Futures Trading Commission. The CFTC’s job is to keep these derivatives markets fair, open, and financially sound by regulating exchanges and clearinghouses, policing market participants like brokers and firms, and enforcing rules against fraud and manipulation. It also sets and enforces requirements on margin, capital, and conduct to reduce systemic risk. While the CFTC handles futures and options on futures, other regulators focus on different parts of finance: FINRA oversees securities firms and stock-related activities, OCC regulates banks, and the FDIC insures bank deposits. This question targets futures and options markets, so the regulator is the CFTC.