- Introducing the CFTC
The CFTC was founded in 1974 as a direct result of the Commodity Futures Trading Commission Act approved by the US Congress during that year. Prior to this event, commodity trading was controlled by minimum regulations. An attempt was made to introduce such laws during the 1920s but these efforts were mainly centered about agricultural products, such as corn and wheat, etc. However, over the following decades the financial markets grew rapidly in size and diversification producing entire new ranges of involved and assorted trading products, such as foreign stock indices and currencies.
CFTC Regulated Binary Options Brokers 2013/14:
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To directly address this ever-evolving situation, the USA introduced new regulations and laws to control commodity trading in 1974. Consequently, the CFTC was created as an independent authority with the prime task to oversee and police this important market sector. The main mission of this agency was to safeguard the interests of Americans from dishonest practices and scams that can arise from commodity trading.
As such, the CFTC strove to maintain an option and futures market that was financially stable, competitive and totally transparent with no hidden costly surprises for the unwary. Essentially, the CFTC was empowered with the authority to protect the general public from fraudulent pursuits. The Commission has been structured about six primary operating units that were classified into two principal sub-groups.
2. How the CFTC functions
The first one has the responsibility for tracking and enforcing laws and regulations within the futures and option financial markets. This sub-group was centered on three important units, which were the Enforcement Division, the Market Oversight Division and the Clearing and Intermediary Division. The second sub-group dealt with overall leadership and legal affairs and also consisted of three primary units. These were the Executive Director Office; General Counsel Office and the Chief Economist Office.
Today, the CFTC has evolved into an operational entity which primarily is intent on guaranteeing the economic stability of the futures trading sector by maintaining and enhancing its effectiveness and viability. The agency also concentrates on the prevention of abusive or manipulating malpractices by enforcing financial honesty and fair price quotations. Essentially, the CFTC effectively supervises the futures market with the prime mission of maintaining a healthy environment harboring minimum risk exposure for its all trading participants.
The main tasks of the CFTC nowadays are to regulate futures including binary options and Forex in order to protect traders form frauds and unscrupulous brokers.
3. Binary Options Brokers Regulated by the CFTC
The only binary options organization boosting this coveted status so far is NADEX.
3.1 NADEX – Sign up to Nadex.com Now
NADEX was launched during 2010 and is the acronym for North American Derivatives Exchange. The firm is located in Chicago, USA and all its key details are clearly displayed on its well-presented website. NADEX is fully regulated by the CFTC.
An impressive trading platform is supported which is 100% web-based. In order to trade binary option, you merely have to register an account with NADEX; make an initial deposit and then log onto the platform using your new username and password. You can then start executing positions directly on the Exchange.
A very accurate price-feed is displayed that is constantly updated in real-time. You can open binary options using assets based on Forex, stocks, commodities and indices. You can also locate many exciting and useful tools by visiting the NADEX website. For example, you will be able to find high quality educational material explaining all the important aspects of binary options trading.
NADEX also supports excellent demo facilities. You can even customize the trading platform by modifying its layout to suit your personal preferences. In summary, NADEX provides a professional and high quality environment for trading binary options that is regulated by the CFTC.