The CFTC Glossary is intended to assist the public in understanding some of the specialized words and phrases used in the futures industry since many of these terms are not found in standard reference works. The CFTC Glossary is not inclusive, and if you cannot find the term you are looking for or have any other comments, please let us know.

Definitions are not intended to state or suggest the views of the Commission concerning the legal significance or meaning of any word or term and no definition is intended to state or suggest the Commission’s views concerning any trading strategy or economic theory.

Before working with any person or firm to trade in commodity futures, commodity pools, options, forex, or other derivatives, verify that the entity is properly registered with the CFTC.  The Commodity Exchange Act requires certain firms and individuals to be registered with the CFTC.  Registration and examination of intermediaries is conducted on behalf of the CFTC by the National Futures Association (NFA) under the supervision of the CFTC.

Washington, D.C. — The Commodity Futures Trading Commission today announced the filing of a civil enforcement action in the Eastern District of Kentucky against defendant William S. Evans III (d/b/a Turning Point Investments) of Harrodsburg, Kentucky, charging him with fraud in connection with soliciting clients to trade S&P commodity futures contracts and options in a commodity pool while failing to register with the CFTC. The Commission’s action also names Evans’ wife, Frances Evans, as a relief defendant in possession of funds from Evans’ alleged illegal activity. On May 29, 2020, U.S. District Court Judge Claria Horn Boom signed a statutory restraining order freezing the Evanses’ assets and prohibiting the destruction or concealment of their books and records.

Making decisions to trade or invest by yourself, especially if you are socially isolated, could make you more susceptible to fraud, research shows. If you’re solicited to buy or trade assets such as gold, silver, or digital assets, taking a little time to talk the idea over with someone you know and trust could save you significant losses down the road.

A 2019 joint study by the FINRA Investor Education Foundation, Better Business Bureau, and Stanford Center for Longevity found that respondents targeted by fraud were more likely to lose money if they did not have anyone with whom they could discuss the offers. In addition, those who engaged with the fraudsters “expressed significantly higher feelings of loneliness.”

According to previously unreleased data, the study’s authors said, nearly twice as many victims (41 percent) agreed with the statement “I didn’t have anyone to discuss (the solicitation) with” as non-victims (24 percent). Widowed (47 percent) and...

Recent market volatility due to the COVID-19 (coronavirus) pandemic has prompted many investors to purchase shares of trading vehicles that use futures contracts or other commodity interests, either in hopes of profiting from a recovery in particular commodity prices or as a means of diversifying their portfolios. These trading vehicles may be organized as exchange-traded products (ETPs) or mutual funds, but that does not necessarily mean they will behave like traditional exchange-traded funds (ETFs) or mutual funds that invest in stocks, bonds or other asset classes.  For example, these vehicles might not provide investors opportunities to “buy the dip” or profit from long-term price gains in the underlying commodity. 

The CFTC Glossary is intended to assist the public in understanding some of the specialized words and phrases used in the futures industry since many of these terms are not found in standard reference works. The CFTC Glossary is not inclusive, and if you cannot find the term you are looking for or have any other comments, please let us know.

Definitions are not intended to state or suggest the views of the Commission concerning the legal significance or meaning of any word or term and no definition is intended to state or suggest the Commission’s views concerning any trading strategy or economic theory.

Before working with any person or firm to trade in commodity futures, commodity pools, options, forex, or other derivatives, verify that the entity is properly registered with the CFTC.  The Commodity Exchange Act requires certain firms and individuals to be registered with the CFTC.  Registration and examination of intermediaries is conducted on behalf of the CFTC by the National Futures Association (NFA) under the supervision of the CFTC.

Washington, D.C. — Commodity Futures Trading Commission Chairman Heath P. Tarbert today announced the CFTC will hold an open meeting on Thursday, June 4, 2020 at 10:00 a.m. (EDT). The meeting will be held via conference call in accordance with the agency’s implementation of social distancing due to the COVID-19 (coronavirus) pandemic.

The Commission will consider the following:

Washington, D.C. — The Commodity Futures Trading Commission at its open meeting today unanimously approved an interim final rule to grant an extension of the compliance schedule for initial margin requirements for uncleared swaps in response to operational challenges certain entities are facing due to the COVID-19 (coronavirus) pandemic. The Commission also unanimously approved a proposed rule which provides an exemption from registration as a commodity pool operator (CPO) for certain foreign persons.

Recent market volatility due to the COVID-19 (coronavirus) pandemic has prompted many investors to purchase shares of trading vehicles that use futures contracts or other commodity interests, either in hopes of profiting from a recovery in particular commodity prices or as a means of diversifying their portfolios. These trading vehicles may be organized as exchange-traded products (ETPs) or mutual funds, but that does not necessarily mean they will behave like traditional exchange-traded funds (ETFs) or mutual funds that invest in stocks, bonds or other asset classes.  For example, these vehicles might not provide investors opportunities to “buy the dip” or profit from long-term price gains in the underlying commodity. 

The mission of the Commodity Futures Trading Commission’s (“CFTC”) is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation. As part of this mission, the CFTC regulates a variety of individuals and organizations. These include futures commission merchants, commodity pool operators, commodity trading advisors, retail foreign exchange dealers, introducing brokers, designated contract markets, foreign boards of trade, swap dealers, and other entities and individuals. To promote market integrity, the CFTC surveils the derivatives markets for various abuses, and holds wrongdoers accountable.

Increasingly, fraudsters use a variety of social engineering, fake profiling, and manipulative techniques to ensnare their victims. Fraud tactics regularly employ common keywords and phrases. With this information, there is an opportunity to utilize modern technology as a tool to augment traditional, manual efforts and to identify bad...

An intermediary is a person who acts on behalf of another person in connection with futures, swaps, or options trading. Intermediaries are generally required to register with the Commission and, depending on the nature of their activities, may be subject to various financial, disclosure, reporting, and recordkeeping requirements. Intermediaries defined in the Commodity Exchange Act and Commission regulations include:

Commodity Pool Operator (CPO)

This term means any person engaged in a business which is of the nature of a commodity pool, investment trust, syndicate, or similar form of enterprise, and who, in connection therewith, solicits, accepts, or receives from others, funds, securities, or property, either directly or through capital contributions, the sale of stock or other forms of securities, or otherwise, for the purpose of trading in commodity interests, including any commodity for future delivery, security futures product, or swap;...

Christa Lachenmayr, a senior agricultural economist at the Commodity Futures Trading Commission, has been appointed the Commission’s liaison to the Department of Agriculture.

CFTC Chairman Heath Tarbert announced the move Thursday morning. Lachenmayr will be the first CFTC official to hold the position in the commission’s 45-year existence, Tarbert told CFTC’s Agricultural Advisory Committee in April when he said CFTC would “soon appoint” a liaison. At the time, he said USDA is required to appoint a liaison officer “for purposes of maintaining a connection between the USDA and the CFTC. Reciprocating with our own liaison will ensure robust dialogue and continued coordination regarding matters of mutual interest.”

In today’s announcement, Tarbert noted the near-term work ahead of Lachenmayr and other CFTC and USDA officials.

Recent market volatility due to the COVID-19 (coronavirus) pandemic has prompted many investors to purchase shares of trading vehicles that use futures contracts or other commodity interests, either in hopes of profiting from a recovery in particular commodity prices or as a means of diversifying their portfolios. These trading vehicles may be organized as exchange-traded products (ETPs) or mutual funds, but that does not necessarily mean they will behave like traditional exchange-traded funds (ETFs) or mutual funds that invest in stocks, bonds or other asset classes.  For example, these vehicles might not provide investors opportunities to “buy the dip” or profit from long-term price gains in the underlying commodity. 

The CFTC Glossary is intended to assist the public in understanding some of the specialized words and phrases used in the futures industry since many of these terms are not found in standard reference works. The CFTC Glossary is not inclusive, and if you cannot find the term you are looking for or have any other comments, please let us know.

Definitions are not intended to state or suggest the views of the Commission concerning the legal significance or meaning of any word or term and no definition is intended to state or suggest the Commission’s views concerning any trading strategy or economic theory.

Melissa Netram heads LabCFTC, an office within the U.S. Commodity Futures Trading Commission charged with understanding FinTech innovation and interfacing with the creators of new products and services.  She comes to the job with significant experience in regulatory policy around tech from her time in the private sector and previous government roles.  In leading LabCFTC, Melissa both educates and innovates, seeking the right balance between regulatory requirements and moving technology forward.  Consider signing up for LabCFTC’s office hours and meeting with her and her team as you move your project forward!  COVID-19:  Our hearts go out to everyone impacted by the virus, and we applaud the workers on the front lines as they strive to bring the world through this troubling time.

In 1984 the CFTC delegated the registration of Futures Commission Merchants to the National Futures Association (“NFA”).  See 49 FR 39593 (Oct. 9, 1984).  For details regarding the registration of Futures Commission Merchants, please visit the NFA website link here:

The mission of the Commodity Futures Trading Commission’s (“CFTC”) is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation. As part of this mission, the CFTC regulates a variety of individuals and organizations. These include futures commission merchants, commodity pool operators, commodity trading advisors, retail foreign exchange dealers, introducing brokers, designated contract markets, foreign boards of trade, swap dealers, and other entities and individuals. To promote market integrity, the CFTC surveils the derivatives markets for various abuses, and holds wrongdoers accountable.

Increasingly, fraudsters use a variety of social engineering, fake profiling, and manipulative techniques to ensnare their victims. Fraud tactics regularly employ common keywords and phrases. With this information, there is an opportunity to utilize modern technology as a tool to augment traditional, manual efforts and to identify bad...

What’s one significant way coronavirus has affected your work?

With fewer speeches and travel obligations, my time commitments have been redistributed. Part necessity and part circumstantial, I am focused on the more technical elements of my job. While both are important, I tend to prefer technician to orator anyway. Even so, this remote environment has forced me to adapt some of the more methodical approaches I typically apply. I normally print, read, highlight, tab, affix notes, and file for frequent re-examination most technical documents. (My husband claims I approach life much the same way, mentally cataloging my views and conversations to ensure easy recall decades later in the event he might challenge my recollection.) So, while I miss my meticulously organized position limits files (there are many) I have now adopted electronic annotation and filing. My laptop has never been more organized.

What’s a typical day like for you right now as we “shelter in...

Recent market volatility due to the COVID-19 (coronavirus) pandemic has prompted many investors to purchase shares of trading vehicles that use futures contracts or other commodity interests, either in hopes of profiting from a recovery in particular commodity prices or as a means of diversifying their portfolios. These trading vehicles may be organized as exchange-traded products (ETPs) or mutual funds, but that does not necessarily mean they will behave like traditional exchange-traded funds (ETFs) or mutual funds that invest in stocks, bonds or other asset classes.  For example, these vehicles might not provide investors opportunities to “buy the dip” or profit from long-term price gains in the underlying commodity.