Why are all these guys on the Federal payroll, and why are they making six figures?
The CFTC is the Commodities/Futures Trading Commission - it's not an "Association," as you erroneously indicated. It is the body of government which regulates commodities and futures business equivalent to the SEC (Securities and Exchange Commission), which has initial primary oversight of the equities, fixed income, and options markets.
In roughly the same way that the SEC and the NASD/stock exchanges monitor BDs (broker-dealers), RIAs (reg. investment advisors) and registered reps/principals, the CFTC regulates: FCMs (futures commission merchants); CPOs (commodity pool operators); IBs (introducing brokers); and APs (associated persons) via the futures/commodities exchanges and the NFA, a self-regulatory body which is the C/F equivalent of the NASD.
That is why they, like the SEC commissioners and staff, are federally employed. And why, like the SEC, at senior levels they command government executive pay grades.
As an aside, and FYI - should the long-held ban on single-stock futures contracts finally, as is being recommended, be lifted (allowing for futures, as well as options, to be traded on individual issues), the SEC and CFTC would likely be merged or otherwise brought into a closer regulatory relationship.
LPS5 |
