CFTC Investigation Enforcement Attorneys
The United States Commodity Future Trading Commission (CFTC) Division of Enforcement is responsible for the investigation and prosecution of any violation that it sees violating the Commodity Exchange Act and CFTC regulations.
It’s important that when a commodities investigation, or enforcement action, gets initiated, you have a strong strategy that will help you achieve a favorable resolution. In some situations, working with the government makes sense. In others, you should take a more defensive position.
What is the Commodities Future Trading Commission (CFTC)
With a commodity futures contract, investors and buy or sell commodities at an agreed-upon number of units on a future date. What makes this ideal is the fact that the price is locked. Investors can sell the contract for a profit before acquiring the commodity. So, if the price of the commodity increases after the commodity is bought, investors can make a decent profit.
Of course, commodity prices are not known for their stability. The values of commodities can go through upward and downward swings. The ability for a big yield is what attracts people to commodity trading. Unfortunately, many people lose money due to receiving bad information. This environment creates the temptation for people to engage in deceptive practices. In response to this, the U.S. Congress created the Commodities Futures Trading Commission to protect consumers and investors from deceitful practices in the commodities market.
What Does the CFTC Do?
The CFTC promotes the openness, soundness, and transparency where commodity derivatives are traded. The Commission strives to protect participants from the risk posed by abuses and inequities that would increase the potential of risk. To do this, the commission monitors the parties involved in the trade.
The Dodd-Frank Amendments Gave the CFTC More Authority
It’s widely known that the Dodd-Frank bill gave the CFTC more authority. As a result of this, CFTC has increased its level of aggressiveness in pursuing investigations and trading activity in the commodities market. All commodities, from precious metals to bitcoins, are being investigated. Before Dodd-Frank, the CFTC did not have any jurisdiction over leveraged precious metal in the United States.
Is the CFTC Necessary?
Unfortunately, it is. Futures trading depends on transparency. Is the CFTC effective? That’s debatable. But at any rate, many people agree that having an independent commission to provide oversight is good for consumers and traders.
If you are currently under investigation, you should speak with an attorney at Farrar & Lewis LLP. We know what’s at stake and can help you deal with any enforcement actions. It’s is our goal to have you achieve a favorable outcome. We will review your case and inform you of your legal options. The attorneys at Farrar & Lewis LLP will help you make the best legal decisions.