Regulation of the Commodity Futures Markets: What Needs To Be Done

The Commodity Futures Trading Commission Act of 1974 provided comprehensive regulation of all commodities, goods, and services traded on the futures markets. Futures trading is the buying and selling of standardized contracts for the future delivery of specified grades and amounts of commodities. Ten commodity exchanges provide organized central markets where trading can take place through open outcry and competitive bidding. The 1974 act authorized the Commodity Futures Trading Commission (CFTC) to operate through fiscal year 1978, and legislation must be enacted reauthorizing the Commission to operate beyond that date.