In carrying out this mission, the Commission polices the derivatives markets for various abuses and works to ensure the protection of customer funds. Further, the agency seeks to reduce the risk of the futures and swaps markets to protect the economy and the public.
To fulfill these roles, the Commission oversees designated contract markets, swap execution facilities, derivatives clearing organizations, swap data repositories, swap dealers, futures commission merchants, commodity pool operators, and other intermediaries.
The markets overseen by the Commission profoundly affect the U.S. economy and the prices individuals in the United States pay for food, energy, transportation, and most other goods and services bought each day. A wide variety of businesses—such as manufacturers, retailers, farmers, and ranchers—uses these markets to manage routine commercial risk. For example, derivatives enable farmers to lock in a price for their crops, and utility companies or airlines to hedge the costs of fuel. Derivatives also enable exporters and importers to manage fluctuations in foreign currency exchange rates, and businesses of all types to lock in their borrowing costs. In the simplest terms, derivatives markets enable businesses of all kinds to manage risk.
