Futures contracts for agricultural commodities have been traded in the United States for more than 150 years and have been under Federal regulation since the 1920s. When the CFTC was created in 1974 with the enactment of the Commodity Futures Trading Commission Act, most futures trading took place in the agricultural sector. Over the years, the futures industry has become increasingly varied and complex. Significant dates in the history of futures regulation before the creation of the CFTC and significant dates in CFTC history from 1974 to the present are given here. 04/03/1848 The Chicago Board of Trade (CBOT) is founded as a cash market for grain. Forward or "to-arrive" contracts begin trading at the CBOT almost immediately. 1856 The Kansas City Board of Trade is established by local Kansas City merchants as a means of trading grain. 1858 Standardized terms are created for forward or "to-arrive" contracts. 02/18/1859 The governor of Illinois signs an act of the Illinois legislature that grants a corporate charter to the CBOT. This charter, among other things, grants the CBOT self-regulatory authority over its members, standardizes grades and provides for CBOT-appointed inspectors of grain whose decisions are binding on members. This is one of several steps in the evolution of forward contracts to modern standardized futures contracts. CFTC Annual reports published before 2004 considered 1859 to be the beginning of futures trading in CBOT wheat, corn, and oats. 10/13/1865 Formal trading rules are instituted at the CBOT, particularly concerning margin and delivery procedures, another step in the evolution of futures contracts. 10/13/1868 The CBOT adopts a rule banning "corners" (defined as "making contracts for the purchase of a commodity, and then taking measures to render it impossible for the seller to fill his contract, for the purpose of extorting money from him"). This is the first known regulatory attempt to deter manipulation. 1870 The New York Cotton Exchange is founded. The NYCE cotton futures contract is traded today on ICE Futures US. 1872 The Butter and Cheese Exchange of New York, predecessor to the New York Mercantile Exchange, is founded. 1876 Futures trading begins at the Kansas City Board of Trade. 1877 The CBOT begins publishing futures prices on a regular basis. Future CBOT documents considered this to be the beginning of "true" futures trading at the CBOT. 1881 The Minneapolis Chamber of Commerce establishes an exchange designed to promote trade in grains and to prevent abuses. In 1947, it became the Minneapolis Grain Exchange. 1882 The Butter and Cheese Exchange of New York is renamed the New York Mercantile Exchange. 1883 The first clearing organization is established to clear CBOT contracts, initially on a voluntary basis. 1880 The first bills are introduced in Congress to regulate, ban, or tax futures trading in the U.S. Over the next 40 years, approximately 200 such bills will be introduced. 1898 The Chicago Butter and Egg Board, predecessor to the Chicago Mercantile Exchange, is founded. 08/14/1914 The Cotton Futures Act, which imposes a prohibitive tax on cotton futures contracts that do not meet certain regulatory requirements, is enacted. 10/13/1915 The Supreme Court declares the Cotton Futures Act unconstitutional on the grounds that it was a revenue bill that originated in the Senate rather than the House of Representatives. 08/11/1916 A new version of the Cotton Futures Act is enacted that addresses the constitutional concerns, but is otherwise similar to the 1914 act. 1919 The Chicago Butter and Egg Board is renamed the Chicago Mercantile Exchange. 09/15/1920 The Federal Trade Commission releases the first of seven volumes of its Report on the Grain Trade. Several volumes discuss the grain futures markets (referred to at that time as "future markets") and make recommendations regarding the regulation of grain futures contracts (including the establishment of speculative position limits). The final volume is released in 1926. 08/24/1921 The Future Trading Act which provides for the regulation of futures trading in grain (corn, wheat, oats, rye, etc.) is enacted. Under the Future Trading Act, the Secretary of Agriculture is empowered to designate exchanges that meet certain requirements enumerated in the Act as "contract markets" in grain futures. The Future Trading Act also imposes a prohibitive tax of 20 cents per bushel on all options trades and on grain futures trades that are not executed on a designated contract market. 05/15/1922 The U.S. Supreme Court declares the Future Trading Act unconstitutional in Hill v. Wallace. The Future Trading Act imposed a prohibitive tax whose primary purpose was to force boards of trade to submit to Federal regulation rather than citing the interstate commerce clause of the Constitution to establish Federal jurisdiction. The Supreme Court ruled that this use of Congress's taxing power was unconstitutional. 09/21/1922 The Grain Futures Act, predecessor to the Commodity Exchange Act, is enacted. The provisions of the Grain Futures Act, including the requirements for designation as a contract market, are similar to those of the Future Trading Act. Unlike the Future Trading Act, the Grain Futures Act is based on the interstate commerce clause and bans off-contract-market futures trading rather than taxing it. The Grain Futures Administration is formed as an agency of the U.S. Department of Agriculture (USDA) to administer the Grain Futures Act. The Grain Futures Act also creates the Grain Futures Commission, which consists of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General. The authority to suspend or revoke a contract market designation is vested in the Grain Futures Commission. 04/16/1923 The Supreme Court rules in Chicago Board of Trade v. Olsen that the Grain Futures Act unlike its predecessor, the Future Trading Act, is constitutional. 06/22/1923 The Grain Futures Administration implements a large trader reporting system, under which each clearing member is required to report on a daily basis the market positions of each trader exceeding a specified size. This large trader reporting system remains an integral part of the CFTC?s oversight scheme to this day. Using this data, the Grain Futures Administration begins publishing in its annual reports information similar to that contained in today?s Commitments of Traders reports. 02/26/1927 The Secretary of Agriculture temporarily suspends large trader reporting requirements, effective until November 1, 1927, in response to complaints that the requirements were preventing large bullish speculators from entering the market, thus allegedly depressing grain prices. Following the suspension, the Grain Futures Administration determines that large trader reporting requirements did not discourage bullish speculators. 10/22/1932 The Secretary of Agriculture again temporarily suspends large trader reporting requirements, in response to complaints that the requirements are depressing grain prices (which at this point in the Great Depression are at historically low levels, but are not yet at record lows). Wheat, corn, and oat futures prices decline to all-time record lows during the period in which the suspension is in effect. The reporting requirements are reinstated on July 20, 1933. 1933 The Commodity Exchange (COMEX) is founded from the merger of the National Metal Exchange, the Rubber Exchange of New York, the National Raw Silk Exchange, and the New York Hide Exchange (the oldest of these exchanges was founded in 1882). By the 1970s, COMEX becomes an exchange that primarily trades gold, silver, and copper futres. Since 1994, COMEX has operated as a subsidiary of the New York Mercantile Exchange (NYMEX), which in turn became a subsidiary of the CME Group in 2008. 06/15/1936 The Commodity Exchange Act is enacted. The Commodity Exchange Act replaces the Grain Futures Act and extends Federal regulation to a list of enumerated commodities that includes cotton, rice, mill feeds, butter, eggs, and Irish potatoes, as well as the grains. All references to "grains" in the Grain Futures Act are changed to "commodities." The Grain Futures Commission becomes the Commodity Exchange Commission and continues to consist of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General. The Commodity Exchange Act grants the Commodity Exchange Commission the authority to establish Federal speculative position limits, but not the authority to require exchanges to set their own speculative position limits. The Commodity Exchange Act, among other things, also requires futures commission merchants to segregate customer funds that are deposited for purposes of margin, prohibits fictitious and fraudulent transactions such as wash sales and accommodation trades, and bans all commodity option trading. The option ban remains in effect until 1981. 07/01/1936 The Commodity Exchange Administration is formed within the USDA to succeed the Grain Futures Administration and administer the Commodity Exchange Act. 04/07/1938 The Commodity Exchange Act is amended to add wool tops (a type of processed wool that is ready to be manufactured into textiles) to the list of regulated commodities. 12/22/1938 The Commodity Exchange Commission promulgates the first Federal speculative position limits for futures contracts in grains (then defined as wheat, corn, oats, barley, flaxseed, grain sorghums, and rye), following an extended public comment period and hearings on the record. 08/26/1940 The Commodity Exchange Commission establishes a Federal speculative position limit for cotton futures contracts. 10/9/1940 The Commodity Exchange Act is amended to add fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, and soybean meal to the list of regulated commodities. 02/23/1942 The Commodity Exchange Administration is merged with other agencies to form the Agricultural Marketing Administration. The organization is now known as the Commodity Exchange Branch of the Agricultural Marketing Administration. 12/05/1942 The Agricultural Marketing Administration is merged into the Food Distribution Administration, with the Commodity Exchange Branch renamed the Compliance Branch. 03/26/1943 The Food Distribution Administration is consolidated with three other agencies to form the Administration of Food Production, which is renamed the War Food Administration on April 19, 1943. Several more reorganizations in USDA affect the regulatory organization for commodity futures trading over the next few years. 1947 The Minneapolis Chamber of Commerce is renamed the Minneapolis Grain Exchange. 02/01/1947 Responsibility for administering the Commodity Exchange Act is transferred to the Commodity Exchange Authority, an agency of USDA. 12/19/1947 The Commodity Exchange Act is amended to enable the Secretary of Agriculture to submit to Congress (pursuant to a congressional subpoena issued two days earlier) and make public the names, addresses, and market positions of large traders (which the Commodity Exchange Act normally requires be kept confidential). Shortly thereafter, the Secretary submits and publishes 35,000 large trader reports. 08/28/1954 The Commodity Exchange Act is amended to add wool (as opposed to wool tops) to the list of regulated commodities. 06/16/1955 The Commodity Exchange Act is amended to grant the Commodity Exchange Authority the authority to issue investigative subpoenas prior to filing a formal administrative proceeding. 07/26/1955 The Commodity Exchange Act is amended to add onions to the list of regulated commodities. 08/05/1955 The Commodity Exchange Act is amended to allow the Commodity Exchange Authority to set the level of registration and renewal fees for futures commission merchants and other registrants. Prior to this, these fees were fixed legislatively at $10. 06/18/1956 The Commodity Exchange Authority issues a complaint charging Vincent W. Kosuga, Sam S. Siegel, and National Produce Distributors with manipulating and/or attempting to manipulate three onion futures contract months. The complaint charges the respondents with one attempted upward manipulation (of the November 1955 contract), one attempted price stabilization manipulation (of the November and December 1955 contracts), and one successful downward manipulation. The March 1956 futures contract, the subject of the alleged downward manipulation, fell from near $2 per 50-lb. bag in late 1955 to 15 cents on the last trading day in March 1956. On June 3, 1960, a USDA Judicial Officer found that the respondents performed the attempted stabilization and successful downward manipulation, but did not find sufficient evidence for the upward manipulation. Following the issuance of the complaint, Congress held hearings to consider banning onion futures trading. 07/24/1956 The Commodity Exchange Act is amended to allow for the exemption from speculative position limits of anticipatory hedges (i.e., long hedges of anticipated needs for a commodity by processors or manufacturers). On the same day, the Bank Holding Company Act of 1956 makes some technical amendments to the Commodity Exchange Act. 08/28/1958 The Onion Futures Act bans futures trading in onions, but does not amend the Commodity Exchange Act. Onions remain on the list of regulated commodities until 1974 and the Onion Futures Act remains in effect to this day. 06/13/1962 The Commodity Exchange Authority publishes the first monthly Commitments of Traders report, replacing the annual reports that had been published in previous years. 12/01/1963 In what is known as the Great Salad Oil Swindle, Anthony (Tino) DeAngelis, owner of the Allied Crude Vegetable Oil Refining Corp., is indicted for, among other things, creating phony warehouse receipts for non-existent soybean oil (through a variety of methods including filling storage tanks with water and covering the water with a thin layer of soybean oil on top) and using those receipts as loan collateral to finance heavy trading of soybean, soybean oil, and cottonseed oil futures (including a 1962 attempt to corner the soybean market). The scandal causes 16 firms (including two Wall Street brokerage houses and a subsidiary of American Express) to go bankrupt and leads to calls for increased regulation of the commodity futures markets. DeAngelis is convicted in 1965 and sentenced to ten years in prison. 07/21/1964 The Senate passes a bill (introduced by Senator Edmund Muskie) to ban futures trading in potatoes, but it does not become law. 02/19/1968 In the first major commodities legislation since 1936, the Commodity Exchange Act is amended to, among other things, add livestock and livestock products (e.g., live cattle, pork bellies) to the list of regulated commodities and institute minimum net financial requirements for futures commission merchants. The 1968 amendments also enhanced the enforcement provisions of the Act in various ways, including enhanced reporting requirements, increases in criminal penalties for manipulation and other violations of the Act, and a provision allowing for the suspension of contract market designation of any board of trade that fails to enforce its own rules. 07/23/1968 The Commodity Exchange Act is amended to add orange juice to the list of regulated commodities. 1973 Grain and soybean futures prices reach record highs. This is blamed in part on excessive speculation and there are allegations of manipulation. Congress begins to consider revising the Federal regulatory scheme for commodities. 10/23/1974 Congress passes the Commodity Futures Trading Commission Act of 1974, and it is signed by President Gerald Ford. The bill overhauls the Commodity Exchange Act and creates the Commodity Futures Trading Commission (CFTC or Commission), an independent agency with powers greater than those of its predecessor agency, the Commodity Exchange Authority. For example, while the Commodity Exchange Authority only regulated agricultural commodities enumerated in the Commodity Exchange Act, the 1974 act granted the CFTC exclusive jurisdiction over futures trading in all commodities. 04/15/1975 Four of the first five CFTC members, including the CFTC's first Chairman, are sworn in. 04/21/1975 Authority for the regulation of futures trading is transferred from the Commodity Exchange Authority, an agency in the Department of Agriculture, to the CFTC. 07/18/1975 The CFTC authorizes exchanges to continue trading futures contracts on a number of commodities previously unregulated under the Commodity Exchange Act. Effectively, this action brings under Federal regulation all commodities for which a futures contract is actively traded. 09/11/1975 The CFTC approves the first futures contract on a financial instrument - the Chicago Board of Trade Government National Mortgage Association (Ginnie Mae) certificates futures contract. 11/26/1975 The CFTC approves the first futures contract on U.S. government debt - the Chicago Mercantile Exchange 90-Day U.S. Treasury bill futures contract. 05/25/1976 The New York Mercantile Exchange declares a default in its May Maine potato contract. After an extensive investigation, the CFTC brings manipulation charges against both the long and short position holders. 04/28/1977 The CFTC asks the U.S. District Court in Chicago to order seven members of the Hunt family of Dallas, and a related company, to liquidate positions that exceed the three million bushel speculative position limit for soybean futures on the Chicago Board of Trade. 08/2/1977 The CFTC approves the first futures contract on long-term U.S. government debt - the Chicago Board of Trade U.S. Treasury bond futures contract. 11/23/1977 The CFTC declares a market emergency in the December coffee "C" futures contract on the New York Coffee and Sugar Exchange (which merged with the New York Cocoa Exchange to form the Coffee Sugar and Cocoa Exchange in 1979 and has now become part of the New York Board of Trade), resulting in an orderly reduction of the open interest in that contract. This is one of several emergencies in coffee futures during the late 1970s. 06/01/1978 The CFTC suspends most commodity options transactions in the U.S. because of pervasive fraud in so-called "London options" and dealer options on physical commodities. 09/30/1978 The Futures Trading Act of 1978 is signed into law by President Carter. The act renews the CFTC's regulatory authority for four years, requires the CFTC to maintain communication with the Securities and Exchange Commission, the Department of the Treasury, and the Federal Reserve Board, and makes some technical changes to the Commodity Exchange Act. 01/02/1979 The CFTC adopts the first rules to govern the operations of commodity pool operators (CPO) and commodity trading advisors (CTA) in a new Part 4 of its rules. 01/04/1979 The CFTC announces a temporary moratorium on entry into the leverage contract business in gold and silver bullion and bulk coins. 03/16/1979 In an emergency action, the CFTC votes to prohibit further trading in the Chicago Board of Trade March wheat futures contract, the first time the Commission orders a market closed in the interest of preventing a price manipulation. 01/06/1980 In an emergency action, the CFTC orders the suspension of futures trading for two days for wheat, corn, oats, soybean meal, and soybean oil on four exchanges after President Carter announces an embargo on the sale of certain agricultural goods to the Soviet Union that includes substantial amounts of grain. 03/28/1980 After careful consideration of a host of market factors, the CFTC votes not to use its emergency powers to order a suspension of trading in silver futures as prices plummet. 05/29/1981 As required by Public Law 96-276, the CFTC transmits to Congress a report on events in the silver market during late 1979 and early 1980, and on issues involving futures contracts on financial instruments. 09/08/1981 The CFTC adopts a comprehensive set of regulations to govern exchange-trading of options on futures contracts under a controlled and monitored three-year pilot program. 09/22/1981 The CFTC grants registration to the National Futures Association as a self-regulatory futures association and approves its articles, bylaws, and rules. NFA begins to hire staff and commences operations on October 1, 1982. 10/16/1981 The CFTC adopts Regulation 1.61 (now part of CFTC Regulation 150, 17 CFR 150) requiring exchanges to establish speculative position limits in all futures contracts. 12/07/1981 The CFTC and the Securities and Exchange Commission jointly announce a basic jurisdictional agreement on the regulatory responsibility of each agency for a variety of financial instruments, in particular stock index futures. This agreement was known as the Shad-Johnson Accord and later became part of the Commodity Exchange Act. 12/08/1981 The CFTC approves the first futures contract settled in cash at expiration, the Eurodollar contract on the Chicago Mercantile Exchange. 02/16/1982 The CFTC approves the first futures contract based on a stock index, the Value Line Index Average traded on the Kansas City Board of Trade. 08/31/1982 The CFTC approves the first options on futures contracts since its announcement of the exchange-traded options pilot program. The contracts include options on sugar futures on the Coffee Sugar and Cocoa Exchange; options on gold futures on the MidAmerica Commodity Exchange (later acquired and eventually closed by the Chicago Board of Trade) and Commodity Exchange, Inc. (now a part of the New York Mercantile Exchange); and options on Treasury bond futures on the Chicago Board of Trade. 01/06/1983 The CFTC approves the first options based on stock index futures contracts: an option for the New York Stock Exchange Composite Index futures contract on the New York Futures Exchange, Inc. and an option on the Standard & Poor's 500 (S & P 500) Index futures contract on the Chicago Mercantile Exchange. 01/11/1983 President Reagan signs the Futures Trading Act of 1982, renewing the CFTC's mandate to regulate futures trading for four more years and clarifying Commission jurisdiction in a number of areas. Among other things, this act codified the Shad-Johnson Accord (which gave the CFTC jurisdiction over broad-based stock index futures and banned single-stock and narrow-based stock index futures), and required the CFTC to act on new contract proposals and rule amendments within specified time periods (365 days for new contracts and 180 days for rule amendments). 07/29/1983 The CFTC adopts final rules governing introducing brokers (IB) and associated persons (AP) of introducing brokers, commodity pool operators, and commodity trading advisors - new registrant categories created by the Futures Trading Act of 1982. Concurrently, the Commission authorizes the National Futures Association to perform registration processing functions for introducing brokers and their associated persons, the first time NFA is authorized to perform registration functions. 02/27/1984 The CFTC adopts final rules to govern temporary licenses for associated persons and a new system of statutory disqualifications for all registrants. Concurrently, the National Futures Association is authorized to grant temporary licenses in appropriate cases. Effective September 30, 1985, following NFA?s adoption of rules in this area, the CFTC authorizes NFA to take adverse action against registrants, subject to appeal to the CFTC. 04/18/1984 The CFTC's Office of the General Counsel issues a letter to the Toronto Futures Exchange stating that the Commission will not take any enforcement action if the TFE?s stock index futures contract on the Toronto Stock Exchange Composite 300 Stock Index is offered and sold in the U.S. Since then, Commission staff has issued many similar letters regarding other foreign stock index futures contracts. 08/29/1984 The CFTC approves amendments to Chicago Mercantile Exchange rules that allow it to establish a trading link with the Singapore International Monetary Exchange, the first trading and clearing link between a domestic and a foreign exchange. 09/28/1984 The CFTC submits "A Study of the Nature, Extent and Effects of Futures Trading by Persons Possessing Material, Nonpublic Information" to its Congressional oversight committees. 10/28/1984 The CFTC approves the first options on domestic agricultural commodity futures contracts on six exchanges. 12/03/1984 The CFTC authorizes the National Futures Association to perform registration processing functions for futures commission merchants, commodity pool operators, commodity trading advisors, and their respective associated persons. 12/31/1984 The Federal Reserve Board, the Securities and Exchange Commission, and the CFTC submit to Congress "A Study of the Effects on the Economy of Trading in Futures and Options." 02/15/1985 The CFTC approves the first option on a physical commodity - Amex Commodity Corporation's physical gold bullion option contract. 02/28/1985 The CFTC ends its silver investigation, alleging that Nelson Bunker Hunt, William Herbert Hunt, and other individuals and firms manipulated and attempted to manipulate silver prices in 1979 and 1980. 03/20/1985 Volume Investors, Inc., a clearing member at COMEX, defaults on a margin call on options on gold futures. The default affects the funds of 100 customers, mostly local traders, and causes the Commission to consider numerous changes to its rules. Ultimately, improved surveillance, early warning, and margining procedures are developed. 04/17/1985 The CFTC adopts Regulation 4.5, 17 CFR 4.5, which excludes certain otherwise regulated persons from the commodity pool operator definition upon the filing of a notice of eligibility, subject to certain limits on trading. Effective August 8, 2003, trading limits have been removed. Most of the notices filed under the regulation are filed by registered investment companies. 04/29/1986 The CFTC terminates the pilot program started in 1981 for exchange-traded commodity option contracts not based on domestic agricultural commodities. With the successful completion of the pilot program, non-agricultural options continue to trade according to CFTC regulations. 09/23/1986 The CFTC, the Securities and Exchange Commission, and the United Kingdom Department of Trade and Industry announce the signing of a Memorandum of Understanding (MOU), which will enhance cooperation and mutual assistance in securing compliance with and enforcement of securities and commodities laws in both countries. Since then, the Commission has entered into information-sharing and enforcement MOUs with many other foreign regulators. 11/10/1986 President Reagan signs the Futures Trading Act of 1986, reauthorizing the CFTC for three years. 01/06/1987 The CFTC votes to end the pilot program in options on agricultural futures contracts and physical commodities, and to continue to allow trading of options on futures in those commodities. 07/23/1987 The CFTC adopts final rules to permit the offer and sale of foreign futures and options in the U.S. and to apply the same customer protection rules to the offer and sale of foreign futures and options as to the offer and sale of domestic futures and options. These rules include a requirement (repealed on March 12, 1996) that foreign options trading must be approved on a case-by-case basis. 10/19/1987 In the biggest one-day price plunge in stock market history, no CFTC-regulated systems fail and no firms default on obligations. 11/09/1987 The CFTC releases an interim report on stock index futures and related stock market activity during October 1987; a follow-up report was released on January 8, 1988, and a final staff report on February 1, 1988. 05/16/1988 The President's Working Group on Financial Markets (Working Group), composed of the CFTC, the Securities and Exchange Commission, the Treasury Department, and the Federal Reserve Board, presents its report on the October 1987 stock market break to President Reagan. 07/20/1988 The CFTC approves the offer and sale of the first foreign option contracts in the U.S. - options to be traded on the SIMEX, the SFE, and the Montreal Exchange. 08/25/1988 The CFTC approves the ACC gold bullion warrants - options on physical gold bullion, the first warrants contract approved by the CFTC. 10/18/1988 The CFTC approves proposals to amend daily price limits and trading halt provisions for stock index futures and option contracts traded on the Chicago Mercantile Exchange, the Chicago Board of Trade, the Kansas City Board of Trade, and the New York Futures Exchange. These proposals were based on recommendations by the Working Group. 11/22/1988 The CFTC approves the Chicago Board of Trade futures contracts in long-term U.K. gilts, the Japanese Stock Index (TOPIX), and long-term Japanese government bonds, and the Chicago Mercantile Exchange Nikkei Stock Average futures contract. These are the first domestic futures contracts based on foreign stock indices and foreign government debt instruments. 01/20/1989 The news media report the disclosure of a two-year undercover investigation of the Chicago trading pits conducted by the Federal Bureau of investigation in cooperation with the CFTC and the Department of Justice. The CFTC takes a number of market integrity actions in the following months. 02/02/1989 The CFTC unanimously approves rules proposed by the Chicago Mercantile Exchange for the basic Globex system, the first international electronic trading system. Trading begins in June 1992. 07/11/1989 The Chicago Board of Trade institutes an emergency action concerning the July 1989 CBOT soybean futures contract. CBOT requires all large traders to reduce their positions prior to the expiration of the July contract. The contract expires in an orderly manner. 07/17/1989 The CFTC approves final rules addressing the regulation of hybrid instruments that combine characteristics of commodity options with debt, preferred equity, or depository interests and, at the same time, approves a policy statement concerning swap transactions and rules establishing an exemptive framework for certain hybrid instruments with limited commodity option components. 11/17/1989 The CFTC releases a major economic analysis of "dual trading" prepared by its Division of Economic Analysis. 06/06/1990 The CFTC and the Commission des Operation de Bourse (COB) of France sign two agreements that provide the most comprehensive structure of information sharing and cooperation yet achieved between financial regulatory authorities in different countries. 11/15/1990 The CFTC, in a move toward closer worldwide cooperation among regulatory authorities, adopts ten general principles intended to assist regulators and developers of screen-based trading systems in addressing areas of common concern. The ten principles were drafted by a CFTC-chaired working group of the International Organization of Securities Commissions (IOSCO). IOSCO also adopts the ten principles. 01/17/1991 Prior to and during the Persian Gulf War, the CFTC works closely with the U.S. Department of Energy to ensure that futures markets have ample access to cash market information about crude oil production and to ensure that the markets perform their price discovery and risk shifting functions in an orderly manner. The Commission reported to Congress that it found no evidence that the sharp rises in energy prices were caused by manipulation or excessive speculation. 09/04/1991 The CFTC released a year-long staff study analyzing the performance of the corn, wheat, and soybean futures contracts traded at the CBOT, "An Analysis of the Delivery-Point Provisions of the CBOT's Corn, Wheat and Soybean Futures Contracts." 11/01/1991 The CFTC and the Securities and Exchange Commission concurrently approve proposed rule changes by the Options Clearing Corporation (OCC) and the Chicago Mercantile Exchange intended to improve coordination in the clearance and settlement of futures and options. The rule changes expand the existing cross-margining programs between the OCC and CME to permit clearing members to include intermarket futures and option positions held in certain non-proprietary accounts. 07/01/1992 The CFTC approves final rules which exempt commodity pool operators and commodity trading advisors of pools sold exclusively to certain highly accredited investors from specific disclosure, reporting, and recordkeeping requirements. 01/01/1992 The CFTC implements initiatives to eliminate unnecessary paperwork. As a result of this initiative, market reports from exchanges are now sent electronically to the Commission. 10/28/1992 President Bush signs the CFTC's reauthorization legislation, the Futures Trading Practices Act of 1992 (FTPA), expanding the CFTC's regulatory authority and reauthorizing the agency until October 1994. The Futures Trading Practices Act, among other things, granted the Commission the authority to exempt over-the-counter (OTC) derivative and other transactions from CFTC regulation and provided for registration of local traders. 01/22/1993 Using new exemptive authority granted in the Futures Trading Practices Act, the CFTC exempts certain swap agreements and hybrid instruments from regulation under the Commodity Exchange Act. 02/26/1993 A bomb placed by terrorists explodes in the basement of the World Trade Center, disrupting futures trading in New York and causing the temporary relocation of the CFTC's New York office. 04/09/1993 The CFTC adopts rules requiring the registration of floor brokers and ethics ucm for all individual registrants, as mandated by the Futures Trading Practices Act. The Commission also adopts rules permitting the suspension of registrants charged with felonies under authority granted by the Futures Trading Practices Act. 04/20/1993 Under Futures Trading Practices Act exemptive authority, the CFTC exempts from regulation certain contracts for the deferred purchase or sale of specified energy products. 07/22/1993 The CFTC approves final rules prohibiting the practice of dual trading by floor brokers, unless an exemption is explicitly granted by the CFTC, in contract markets that trade in excess of a threshold level of 8,000 contracts a day. 01/01/1993 The CFTC approves 46 new futures and option contracts, breaking the previous record. 10/25/1993 The CFTC releases a report entitled "OTC Derivative Markets and Their Regulation," the first of several required by the Futures Trading Practices Act. 01/01/1994 In response to a recommendation in the CFTC's OTC Derivative Markets Report, the President's Working Group on Financial Markets expands its charter to encompass new developments in financial markets, including the growth of OTC derivatives. 01/10/1994 The CFTC files an administrative complaint against two former Chicago Board of Trade members, Anthony Catalfo and Darrell Zimmerman, alleging that the respondents engaged in a scheme to manipulate Treasury bond futures and put options on the CBOT. On September 26, 1994, an administrative law judge issues a default order against both respondents finding that they committed the violations as alleged. 04/01/1994 The CFTC releases another report mandated by the Futures Trading Practices Act, "A Study of the Global Competitiveness of US Futures Markets."? 06/20/1994 In response to concerns over cattle market volatility, the CFTC releases a report entitled, "The Live Cattle Futures Market, April to June 1994: Review of Market Fundamentals and Analysis of Large Trader Positions and Activity." In September 1994, the CFTC releases a follow-up report entitled, "An Analysis of Intraday Trading of Beef Packers in Live Cattle Futures." 06/28/1994 The CFTC approves final rules permitting registrants to provide to customers a "generic" risk disclosure statement that will satisfy risk disclosure requirements applicable to both domestic and foreign commodity futures and options transactions. 11/29/1994 The CFTC releases separate studies on audit trails, computerized trading, and penalties as required by the Futures Trading Practices Act of 1992. 12/01/1994 The CFTC, in coordination with the Securities and Exchange Commission, files and simultaneously settles, for a fine of $10 million, an administrative complaint against BT Securities, a subsidiary of Bankers Trust. The Commission's complaint alleges that BT Securities committed fraud in its over-the-counter (OTC) derivatives transactions with Gibson Greetings. 12/21/1994 The CFTC approves Phase I of new risk assessment rules which require futures commission merchants to maintain and file organization charts showing major affiliated persons, policies and procedures governing risk management, and consolidated financial statements. 04/21/1995 President Clinton signs a bill reauthorizing the CFTC through the year 2000, but otherwise making no amendments to the Commodity Exchange Act. 05/01/1995 A new Commitments of Traders report is introduced that reflects, for each market, the combined futures and futures-equivalent option positions of traders identified through the CFTC's and the exchanges' large trader reporting systems. 05/17/1995 Representatives of regulatory bodies from 16 countries, responsible for supervising the world's leading futures exchanges, issue a Declaration at a meeting in Windsor, England hosted by the U.K. Securities Investment Board (SIB) and the CFTC. The Windsor Declaration outlines the steps the representatives propose to take to strengthen the supervision of the international futures markets. 06/29/1995 The CFTC adopts comprehensive revisions to rules governing disclosure by commodity pool operators and commodity trading advisors. The changes are designed to increase the clarity and comprehension of disclosure to investors. 10/10/1995 The CFTC launches its Internet website, www.cftc.gov. (CFTC Press Release 3867-95, October 10, 1995) 02/29/1996 The CFTC's Division of Trading and Markets issues a no-action letter to permit the Deutsche Terminborse (DTB) (predecessor to Eurex) to install and utilize DTB computer terminals in the U.S. in connection with the purchase and sale of certain futures and options contracts, the staff's first consideration of a request to place computer terminals of an off-shore exchange in the U.S. (CFTC Press Release 3893-96, March 4, 1996) 03/12/1996 The CFTC eliminates the requirement for case-by-case approval of the offer and sale of foreign option contracts in the U.S., subject to existing restrictions for options on foreign stock index futures and foreign sovereign debt futures. (CFTC Press Release 15-96, March 25, 1996) 03/15/1996 The CFTC announces that it is one of 14 international futures regulators that are the founding signatories of a Declaration on Cooperation and Supervision of International Futures Exchanges and Clearing Organizations. (CFTC Press Release 3995-96, March 15, 1996) 07/10/1996 A CFTC order imposes a $600,000 civil monetary penalty against Fenchurch Capital Management Inc. of Chicago, on charges of market manipulation and cornering of the cheapest-to-deliver note deliverable against the Chicago Board of Trade ten-year Treasury note futures contract. (CFTC Press Release 3922-96, July 10, 1996) 01/01/1996 The CFTC approves a record 92 new futures and option contracts. 12/19/1996 The CFTC notifies the Chicago Board of Trade that the delivery terms of its corn and soybean futures contracts do not satisfy the statutory objectives of Section 5a(a)(10) of the Commodity Exchange Act of "permitting the delivery of any commodity...at such point or points and at such quality and locational price differentials as will tend to prevent or diminish price manipulation, market congestion, or the abnormal movement of such commodity in interstate commerce” and gives the CBOT 75 days to respond. (CFTC Press Release 3983-96, December 19, 1996) 02/25/1997 In Dunn v. CFTC, the U.S. Supreme Court rules that foreign currency options are ''transactions in foreign currency'' for purposes of the Treasury Amendment exclusion to the Commodity Exchange Act, and, thus, that the CFTC has no jurisdiction over such transactions. The Commodity Futures Modernization Act of 2000 will endeavor to clarify CFTC jurisdiction over retail transactions in foreign currency futures and options. 02/28/1997 The CFTC approves final rules for fast-track approval of new contracts and contract amendments. These rules provide for approval of many new contracts within ten days and further provide that rule amendments and certain new contracts are to be approved within 45 days. At this time, under the Commodity Exchange Act, the Commission legally has 365 days to act on applications for new contracts and 180 days to act on proposed rule amendments. (CFTC Press Release 3994-97, February 27, 1997) 11/07/1997 The CFTC orders the Chicago Board of Trade to change the delivery specifications for its corn and soybean futures contracts pursuant to Section 5a(a)(10) of the Commodity Exchange Act. The Commission notes that the CBOT can propose alternate specifications that meet the requirements of the Act. (CFTC Press Release 4077-97, November 7, 1997) 12/04/1997 The Securities and Exchange Commission vetoes the Chicago Board of Trade's proposed futures and futures options on the Dow Jones Transportation Average and the Dow Jones Utilities Average, stating that these contracts are too narrow-based to meet the requirements of the 1982 Shad-Johnson Accord. This is the only time the SEC exercised its veto power under the Accord. A court decision subsequently overturns the SEC veto and the CFTC approves the contracts on October 27, 1999. 02/13/1998 The CFTC adopts amendments to its risk disclosure rules to eliminate requirements that futures commission merchants and introducing brokers provide institutional investors and certain other sophisticated market participants with standardized risk disclosure statements, while continuing to require such risk disclosure statements for retail customers. (CFTC Press Release 4106-98, February 13, 1998) 05/07/1998 The CFTC issues a "concept release" seeking public comments to assist it in reexamining its approach to the over-the-counter (OTC) derivatives market. After an extended public comment period and much discussion among the members of the Working Group, Congress passes legislation (part of an October 1998 appropriations bill) temporarily preventing the CFTC from taking further action. Congress eventually creates legal certainty for OTC derivatives in the Commodity Futures Modernization Act of 2000. (CFTC Press Release 4142-98, May 7, 1998) 05/07/1998 The CFTC approves the Chicago Board of Trade's new corn and soybean futures contracts with delivery specifications that supersede those ordered by the CFTC on November 7, 1997. (CFTC Press Release 4143-98, May 7, 1998) 05/11/1998 The CFTC enters into a settlement with Sumitomo Corporation to resolve allegations of manipulating the copper market in 1995 and 1996 that includes a civil monetary penalty of $150 million. (CFTC Press Release 4144-98, May 11, 1998) 06/11/1998 The CFTC permits futures-style margining of commodity options traded on regulated futures exchanges. (CFTC Press Release 4155-98, June 11, 1998) 03/23/1999 The CFTC approves for the first time an order exempting certain cleared swap agreements from most provisions of the Commodity Exchange Act and Commission regulations. The order applies to certain swap agreements submitted for clearing through SwapClear, a swaps clearing organization developed by the London Clearing House Limited. (CFTC Press Release 4247-99, March 23, 1999) 06/25/1999 The Chicago Board of Trade, Chicago Mercantile Exchange, and New York Mercantile Exchange petition the CFTC pursuant to Section 4(c) of the Commodity Exchange Act for exemptive relief from certain statutory requirements in three areas: (1) the contract market designation procedures for new contract submissions; (2) the contract market rule review procedures; and (3) pertinent provisions of the Act that would otherwise prevent the immediate adoption and implementation of trading rules and procedures for a contract listed by a contract market that are comparable to those of a competing foreign exchange. The CFTC requests public comment on this petition. The concerns raised in this petition are eventually addressed by the Commodity Futures Modernization Act of 2000. (CFTC Press Release 4303-99, August 20, 1999) 11/04/1999 The CFTC staff issues a report comparing the global competitiveness of U.S. futures and option markets to their counterparts abroad. The report, "The Global Competitiveness of US Futures Markets Revisited," ?updates a 1994 CFTC study, using the same methodology as the earlier study. (CFTC Press Release 4333-99, November 4, 1999) 11/09/1999 The Working Group issues a report unanimously calling for legislation creating greater legal certainty for over-the-counter (OTC) derivatives. 11/17/1999 The CFTC approves final rules that permit futures exchanges to list new contracts for trading pursuant to exchange certification - without prior Commission approval. This addresses one of the requests in the June 25, 1999 petition for exemptive relief of the Chicago Board of Trade, Chicago Mercantile Exchange, and New York Mercantile Exchange. (CFTC Press Release 4339-99, November 17, 1999) 02/22/2000 The CFTC transmits to Congress a staff report, "A New Regulatory Framework," which recommends changes to the CFTC's regulatory structure. The report details changes that will lessen the regulatory burdens on U.S. futures markets by creating a more flexible regulatory framework. At the same time, the framework provides the over-the-counter (OTC) markets with greater legal certainty. Much of this framework will be incorporated into the Commodity Futures Modernization Act of 2000. (CFTC Press Release 4367-00, February 22, 2000) 03/06/2000 The CFTC permits use of electronic signatures in lieu of handwritten signatures by customers of futures commission merchants, clients of commodity trading advisors, and commodity pool participants. (CFTC Press Release 4372-00, March 6, 2000) 03/28/2000 The Commission participates in the first annual international Internet Surf Day, organized by the International Organization of Securities Commissions (IOSCO), which targets futures and securities fraud and abuse on the Internet. This Surf Day includes the participation of approximately 220 individuals from 21 regulators in 18 countries. The second Surf Day takes place on April 23, 2001. (CFTC Press Release 4399-00, May 15, 2000) 09/14/2000 The CFTC and Securities and Exchange Commission announce an agreement providing for joint jurisdiction over security futures products, that is, single stock futures and futures on narrow-based stock indices. Under the agreement, which will be incorporated into the Commodity Futures Modernization Act of 2000, the CFTC retains exclusive jurisdiction over futures contracts on broad-based stock indices. (CFTC Press Release 4447-00, September 14, 2000) 11/22/2000 The CFTC approves rules implementing the New Regulatory Framework. These rules are later superseded by passage of the Commodity Futures Modernization Act of 2000 and most new rules were subsequently withdrawn. (CFTC Press Release, 4475-00, November 22, 2000) 12/21/2000 President Clinton signs into law the Commodity Futures Modernization Act of 2000, which, among other things, reauthorizes the Commission for five years, overhauls the Commodity Exchange Act to create a flexible structure for the regulation of futures and options trading, clarifies Commission jurisdiction over certain retail foreign currency transactions, and repeals the 18-year-old ban on the trading of single stock futures. On the same day, the CFTC withdraws most of the New Regulatory Framework; however, the amendments to Regulation 1.25 concerning investment of customer funds by futures commission merchants and derivatives clearing organizations are made effective immediately with some technical corrections. The amendments permit investment of customer funds in new types of instruments, such as money market mutual funds. (CFTC Press Release 4479-00, December 15, 2000; CFTC Press Release 4481-00, December 21, 2000) 02/05/2001 In light of the Commodity Futures Modernization Act's clarification of the CFTC's jurisdiction over retail foreign currency trading, the CFTC issues an advisory and a revised consumer alert addressing the offering of foreign currency trading opportunities to the retail public. The advisory explains how firms may lawfully offer foreign currency trading opportunities and the consumer alert warns the public of the risks of foreign currency trading and of foreign currency scams. (Advisory on Foreign Currency; CFTC Press Release 4489-01, February 8, 2001) 04/18/2001 For the first time since the passage of the Commodity Futures Modernization Act, the CFTC uses its newly-clarified authority to file a complaint charging fraud and the offering of illegal futures contracts against a firm soliciting retail investors to trade foreign currency contracts. Over the next several years, the CFTC filed similar complaints against dozens of firms that solicit retail investors to trade foreign currency. (CFTC Press Release 4508-01, April 19, 2001) 07/09/2001 The CFTC approves the application of EnergyClear Corporation for registration as a derivatives clearing organization under the Commodity Exchange Act. This is the first new derivatives clearing organization that is not affiliated with a trading facility to be granted registration by the Commission since the passage of the Commodity Futures Modernization Act. Derivatives clearing organizations for the existing futures exchanges were grandfathered in under the Commodity Futures Modernization Act. (CFTC Press Release 4540-01, July 11, 2001) 08/01/2001 The CFTC kicks off implementation of the Commodity Futures Modernization Act by adopting new rules for the various types of exchanges (with different levels of regulatory oversight) created by the Act. These types of exchanges include designated contract markets, derivatives transaction execution facilities, exempt boards of trade, and exempt commercial markets. (CFTC Press Release 4547-01, August 1, 2001) 08/13/2001 The CFTC and the Securities and Exchange Commission adopt the first sets of rules to enable the trading of single stock futures and futures on narrow-based stock indexes. Additional rules are adopted in subsequent months. (CFTC Press Release 4550-01, August 13, 2001; CFTC Press Release 4554-01, August 21, 2001) 08/21/2001 The CFTC orders Avista Energy, Inc. to pay $2.1 million to settle CFTC charges of manipulating electricity futures; several former Avista employees (who each subsequently settle with the CFTC) and a NYMEX floor broker (who is found liable in September 2004) are also charged with participating in the manipulative scheme. (CFTC Press Release 4555-01, August 21, 2001) 08/22/2001 The CFTC adopts new rules for derivatives clearing organizations, further implementing the Commodity Futures Modernization Act. (CFTC Press Release 4560-01, August 22, 2001) 09/11/2001 The CFTC's New York office in the World Trade Center is destroyed in a terrorist attack; fortunately all Commission employees escape without serious injury. The trading floor of the New York Board of Trade (NYBOT) is also destroyed and trading is disrupted on other exchanges. NYBOT soon resumes trading on a back-up trading floor it has maintained since the 1993 World Trade Center bombing and eventually moves into permanent space in the NYMEX building. 01/11/2002 The CFTC issues an Order pursuant to Section 409 of the Federal Deposit Insurance Corporation Improvement Act, added by the Commodity Futures Modernization Act, concerning the multilateral clearing activities of NOS Clearing ASA, a Norwegian clearing house, in connection with transactions entered into on the International Maritime Exchange. This is the first time the CFTC uses its authority under that section to determine that supervision by a foreign financial regulator, in this case the Norwegian Banking, Insurance and Securities Commission, of a multilateral clearing organization for over-the-counter (OTC) derivative instruments satisfies appropriate standards. Accordingly, NOS Clearing ASA may act as a multilateral clearing organization for OTC derivative instruments in the same manner as a derivatives clearing organization or a registered securities clearing agency. (CFTC Press Release 4595-02, January 14, 2002 03/11/2002 The CFTC releases a report on its own responses and those by industry participants to the terrorist attacks on September 11, 2001. (CFTC Press Release 4617-02, March 11, 2002) 04/29/2002 After several months in temporary quarters following the September 11, 2001 attacks, the CFTC New York office moves into its new permanent space at 140 Broadway. 06/21/2002 The CFTC issues "Report on the Study of the Commodity Exchange Act and the Commission's Rules and Orders Governing the Conduct of Registrants Under the Act," also known as the Intermediaries Study, pursuant to Section 125 of the Commodity Futures Modernization Act. (CFTC Press Release 4659-02, June 21, 2002) 07/01/2002 The CFTC restructures its staff organization to facilitate the implementation of the Commodity Futures Modernization Act. Under the restructuring, the functions previously performed by the Division of Trading and Markets and the Division of Economic Analysis are performed by two new divisions and one new office: the Division of Market Oversight, the Division of Clearing and Intermediary Oversight, and the Office of the Chief Economist. (CFTC Press Release 4600-02, February 1, 2002) 07/09/2002 President Bush issues an executive order creating the Corporate Fraud Task Force; the chairman of the CFTC is a member. 08/21/2002 The CFTC and Securities and Exchange Commission adopt the final rules necessary to permit domestic trading in single stock futures, concerning margin and the treatment of customer funds, respectively. (CFTC Press Release 4685-02, August 2, 2002) 11/08/2002 Trading in single stock futures is launched on two new exchanges - OneChicago and NQLX. 12/19/2002 Dynegy Marketing and Trade and West Coast Power LLC pay $5 million to settle CFTC charges of attempted manipulation and false reporting of prices. During 2003 and early 2004, many energy companies settle similar claims under the Commodity Exchange Act that they intentionally reported false natural gas price and volume information to energy reporting firms in an attempt to affect prices of natural gas contracts. Some of the subsequent settlements are for $20 million or more. (CFTC Press Release 4728-02, December 19, 2002 02/05/2003 The CFTC and the Federal Energy Regulatory Commission hold a joint conference on "Credit Issues in the Energy Market: Clearing & Other Solutions." (CFTC Press Release 4752-03, February 11, 2003) 03/12/2003 The CFTC charges the bankrupt Enron Corporation and a former Enron vice president with manipulating prices in the natural gas market. Enron also is charged with operating an illegal, undesignated futures exchange and offering illegal lumber futures contracts through Enron Online, its Internet trading platform. Enron settles in May 2004 and the trader settles in July 2004. (CFTC Press Release 4762-03, March 12, 2003) 07/15/2003 The CFTC approves exchange rules implementing a common clearing link between the Chicago Board of Trade and Chicago Mercantile Exchange. (CFTC Press Release 4821-03, July 15, 2003) 08/26/2003 The CFTC and the National Futures Association announce new rules to combat fraud in the retail off-exchange foreign currency market. (CFTC Press Release 4833-03, August 26, 2003) 01/01/2003 The CFTC approves or (in most cases) accepts the exchange self-certification of a record 348 new futures and option contracts during fiscal year 2003. While about 200 of these new contracts are single stock futures, the number of new non-single stock futures contracts easily exceeds the old record of 92 new contracts set in fiscal year 1996. 11/18/2003 The CFTC joins other members of the President's Corporate Fraud Task Force in undercover "Operation Wooden Nickel" to prosecute individuals and companies allegedly stealing millions of dollars through sales of illegal foreign currency futures contracts. (CFTC Press Release 4867-03, November 19, 2003) 02/04/2004 The CFTC designates the US Futures Exchange, LLC, also known as Eurex US, as a contract market for the automated trading of futures and options on futures contracts. This is the first designated contract market to be owned by a foreign futures exchange. (CFTC Press Release 4886-04, February 4, 2004) 04/14/2004 The CFTC releases a Spanish-language consumer protection advisory on commodity scams. (CFTC Press Release 4913-04, April 14, 2004) 05/13/2004 Enron Corporation receives the bankruptcy court's permission to enter into a settlement with the CFTC that provides for a $35 million civil monetary penalty. Collection is considered unlikely in light of the bankruptcy. (CFTC Press Release 4920-04, April 28, 2004) 06/30/2004 In CFTC v. Zelener, the U.S. Court of Appeals for the Seventh Circuit finds that certain foreign currency transactions were spot transactions rather than futures contracts, and, thus, outside of CFTC jurisdiction. 08/30/2004 The CFTC announces that it has completed its seven-month investigation of the sharp upward movement in prices in the natural gas market that occurred in late 2003. The CFTC states that its investigation did not uncover evidence that any entity or individual engaged in activity with an intent to cause an artificial price in natural gas in late 2003. (CFTC Press Release 4982-04, August 30, 2004) 10/12/2004 The CFTC announces its participation, through a partnership with 19 other Federal agencies, in the launching of a new financial education website and toll-free hotline number. The mymoney.gov website and the 1-888-mymoney toll-free hotline were established to provide Americans easy access to information that can help them better understand their money: how to save it, invest it, and manage it wisely to meet important personal goals. (CFTC Press Release 5007-04, October 12, 2004) 02/10/2005 The CFTC and the Committee of European Securities Regulators (CESR) hold a two-day roundtable on cross-border derivatives issues which is attended by 60 market participants and senior regulators. The purpose of the roundtable is to hear the issues affecting those actively involved in transatlantic business in exchange-traded derivatives and related transactions, and to establish key areas where improvements can be made. On March 31, 2005, the CFTC and CESR release a Communiqué requesting comment on a proposed work program to facilitate the conduct and supervision of a trans-Atlantic derivatives business. The final communiqué is issued on June 28, 2005. (CFTC Press Release 5049-05, February 14, 2005) 04/06/2005 The CFTC holds a roundtable on commodity pool operators and the commodity pool industry that focuses on the growth, innovation, and regulation of the commodity pool industry and the challenges and issues faced by the industry. (CFTC Press Release 5061-05, March 24, 2005) 04/29/2005 The CFTC's Office of the Chief Economist releases a staff research report, "Price Dynamics, Price Discovery and Large Futures Trader Interactions in the Energy Complex," ?which finds that managed money traders (MMTs or hedge funds) do not change their positions as frequently as other participants, particularly including hedgers. The staff found that there is a significant negative correlation between MMT positions and other participants' positions (including the largest hedgers). Results suggest that MMT traders provide liquidity to large hedgers and not the other way around. (CFTC Press Release 5074-05, April 29, 2005) 10/12/2005 The CFTC and the Federal Energy Regulatory Commission enter into a memorandum of understanding regarding the sharing of information and the confidential treatment of proprietary energy trading data, pursuant to the Energy Policy Act of 2005. (CFTC Press Release 5127-05, October 12, 2005) 10/18/2005 Refco, Inc., the parent company of Refco LLC, a large futures commission merchant, files for Chapter 11 bankruptcy, eight days after the company announced that its chairman, Philip R. Bennett, has hidden $430 million in bad debts from the company's auditors and investors, and only two months after the company's initial public offering. The futures commission merchant is not included in the bankruptcy filing and is subsequently sold to Man Financial. During this time, CFTC auditors and attorneys are actively engaged in re-confirming that Refco LLC's customer funds on deposit remain uncompromised and that the capital requirements of Refco LLC continue to be met. 01/04/2006 The CFTC announces the filing and simultaneous settlement of charges against Shell Trading US Company (STUSCO) and Shell International Trading and Shipping Co. (STASCO), two companies whose ultimate parent is Royal Dutch Shell, and Nigel Catterall, who was the chief trader on behalf of STUSCO, for engaging in prearranged trades on the New York Mercantile Exchange (NYMEX) on five occasions between November 2003 and March 2004. The settlement also directs STASCO to pay a $200,000 civil penalty and Catterall to pay a $100,000 civil penalty. (CFTC Press Release 5150-06, January 4, 2006) 02/15/2006 The CFTC holds a public hearing to discuss issues related to self-regulation and self-regulatory organizations in the U.S. futures industry. (CFTC Press Release 5159-06, February 13, 2006) 06/21/2006 The CFTC publishes in the Federal Register a request for comment as part of a comprehensive review of its commitments of traders (COT) reports. The COT reports are weekly reports, published by the CFTC, showing aggregate trader positions in certain futures and option markets. The CFTC receives a record 4,659 comment letters in response to this notice. (CFTC Press Release 5190-06, June 21, 2006) 06/27/2006 The CFTC holds a public hearing on the issue of what constitutes a "board of trade, exchange, or market located outside the United States," as that phrase is used in Section 4(a) of the Commodity Exchange Act. (CFTC Press Release 5184-06, May 26, 2006) 06/28/2006 The CFTC announces the filing of a civil enforcement action in the U.S. District Court for the Northern District of Illinois against BP Products North America, Inc. (BP), a subsidiary of BP plc (formerly British Petroleum), alleging that BP manipulated the price of February 2004 TET physical propane by, among other things, cornering the market for February 2004 TET physical propane. The CFTC also charges BP with attempting to manipulate the price of April 2003 TET physical propane by attempting to corner the April 2003 TET physical propane market. (CFTC Press Release 5193-06, June 28, 2006) 09/18/2006 Amaranth Advisors, LLC, a large hedge fund, reports that it has lost $6 billion of its capital, primarily due to losses on seasonal inter-month spread positions in futures and other derivatives on natural gas. Amaranth sells its natural gas and some other positions to JPMorgan Chase and Co. and Citadel Investment Group, LLC the next day. Amaranth subsequently announces that it will close. 10/31/2006 Following a public hearing on June 27, 2006, the CFTC issues a Statement of Policy that, among other things, affirms the use of the staff no-action process for foreign boards of trade that seek to provide direct access for U.S. persons to their electronic trading systems. (CFTC Press Release 5252-06, October 31, 2006) 11/17/2006 The CFTC and the U.K. Financial Services Authority (FSA) sign a memorandum of understanding concerning consultation, cooperation, and the exchange of information related to market oversight. The MOU establishes a framework for the CFTC and FSA to share information that the respective authorities need to detect potential abusive or manipulative trading practices that involve trading in related contracts on U.K. and U.S. derivatives exchanges in order to provide the regulators with a more complete view of these markets for oversight purposes. (CFTC Press Release 5259-06, November 20, 2006) 01/05/2007 The CFTC begins publishing a new weekly commitments of traders report, entitled "COT - Supplemental." The new report shows aggregate futures and options positions of index traders, as well as noncommercial and commercial traders in 12 selected agricultural commodities. (CFTC Press Release 5262-06, December 5, 2006) 02/01/2007 The CFTC moves to strengthen futures exchange governance by issuing a guidance calling for increased public representation at key levels of decision making, including boards of directors. This guidance is issued in light of a recent trend in which U.S. futures exchanges have become publicly held for-profit corporations rather than mutually-owned non-profit organizations. (CFTC Press Release 5282-07, February 1, 2007) 05/07/2007 The CFTC and the North American Securities Administrators Association (NASAA) issue a joint investor alert to warn of the dangers facing retail investors who are lured into foreign currency (forex) trading frauds. In the alert, the regulators caution investors that off-exchange forex trading by retail investors is at best extremely risky, and at worst, plagued by outright fraud. (CFTC Press Release 5332-07, May 7, 2007). 06/05/2007 The CFTC approves an exchange traded credit derivative contract based on the Chicago Mercantile Exchange's North American Investment Grade High Volatility Credit Index. This product is based on an index or bundle of reference entities. On the same day, the CFTC also issues an exemptive order to allow the Options Clearing Corporation to clear similar products to be traded on the Chicago Board Options Exchange. (CFTC Press Release 5345-07, June 5, 2007) 07/12/2007 The Chicago Mercantile Exchange and the Chicago Board of Trade announce the completion of their merger forming the world's largest futures exchange, the CME Group. 07/25/2007 The CFTC charges the hedge fund Amaranth and its former head energy trader, Brian Hunter, with attempting to manipulate the price of natural gas futures on February 24, 2006 and April 26, 2006. The CFTC also alleges that Amaranth tried to cover up the conduct by making false statements to the New York Mercantile Exchange. The following day, the Federal Energy Regulatory Commission issues an order to show cause in the same matter. (CFTC Press Release 5359-07, July 25, 2007). 07/26/2007 The CFTC charges Energy Transfer Partners, L.P. and three of its subsidiaries with attempting to manipulate the price of physical natural gas at the Houston Ship Channel (HSC) delivery hub during September and November 2005 and with attempting to manipulate the October 2005 and December 2005 HSC monthly index prices of natural gas published by Platts in its Inside FERC's Gas Market Report (Inside FERC). The CFTC alleges that the conduct was designed to benefit basis swap positions established on the IntercontinentalExchange (ICE). The prices of the basis swaps were based in part on the Inside FERC index prices. On the same day, the Federal Energy Regulatory Commission issues an order to show cause in the same matter. (CFTC Press Release 5360-07, July 26, 2007). On March 17, 2008, ETP and its subsidiaries agree to pay $10 million in civil monetary penalties to settle these charges. (CFTC Press Release 5471-08, March 17, 2008). 09/18/2007 The CFTC holds a hearing to examine trading on regulated exchanges and Exempt Contract Markets (ECMs) as part of an ongoing review of energy futures trading. (CFTC Press Release 5382-07, September 13, 2007). 10/24/2007 The CFTC delivers to Congress a report that includes recommendations to increase the oversight of some trading activity on ECMs. (CFTC Press Release 5403-07, October 24, 2007). 10/25/2007 BP Products North America, Inc. (BP) agrees to pay a total of $303 million in sanctions to settle charges of manipulation and attempted manipulation in the propane market. (CFTC Press Release 5405-07, October 25, 2007). 02/13/2008 The CFTC announces the establishment of a new Energy Markets Advisory Committee to provide a public forum to examine emerging issues related to the energy markets and the CFTC's role in these markets under the Commodity Exchange Act. (CFTC Press Release 5455-08, February 13, 2008). 03/11/2008 The CFTC and the SEC enter into a mutual cooperation agreement to enhance coordination and facilitate review of new derivative products. (CFTC Press Release 5468-08, March 11, 2008). 04/22/2008 The CFTC holds a roundtable discussion on the agricultural markets. The roundtable is designed to gather information about whether the futures markets are properly performing their risk management and price discovery roles. (CFTC Press Release 5484-08, April 10, 2008). 05/22/2008 Congress enacts the Food, Conservation, and Energy Act of 2008. The Act reauthorizes the CFTC until 2013 and gives the agency additional regulatory and enforcement tools necessary to continue to effectively oversee the futures industry, particularly transactions in energy products and foreign currency. (CFTC Press Release 5501-08, May 23, 2008). 05/29/2008 The CFTC announces a number of initiatives to increase transparency of the energy futures markets including (1) expanded international surveillance information for crude oil trading; (2) several steps to gather additional information from and improve transparency in the energy futures markets; and (3) the continuation of a nationwide investigation of the crude oil markets. (CFTC Press Release 5503-08, May 29, 2008). 06/03/2008 The CFTC announces several policy initiatives aimed at addressing concerns in the agricultural futures markets raised at its April 22nd roundtable in Washington, DC. These include, among other things: (1) measures to obtain more information from index traders and swap dealers; (2) the development of a new monthly publication on trader data for agricultural and other markets, beginning in July 2008; and (3) the disclosure of an investigation into cotton futures trading. (CFTC Press Release 5504-08, June 3, 2008). 06/10/2008 In light of the recent rise in crude oil and other commodity prices and the influx of new investors into commodity futures markets, the CFTC announces the formation of an interagency task force to evaluate developments in commodity markets. The task force includes staff representatives from the CFTC, the Federal Reserve, the Department of the Treasury, the Securities and Exchange Commission, the Department of Energy, and the Department of Agriculture. (CFTC Press Release 5508-08, June 10, 2008). 06/11/2008 The CFTC hosts an international manipulation enforcement conference that is focused on global trading in the energy markets. Participants include senior enforcement officials from 10 countries. (CFTC Press Release 5509-08, June 13, 2008). 06/17/2008 The CFTC announces that Commission staff has amended the "no-action relief letter" under which ICE Futures Europe is permitted direct access to U.S. customers. The amended letter conditions direct access on ICE Futures Europe's adoption of equivalent U.S. position limits and accountability levels on its West Texas Intermediate (WTI) crude oil contract, which is linked to the NYMEX crude oil contract. (CFTC Press Release 5511-08, June 17, 2008). 07/22/2008 The Interagency Task Force on Commodity Markets releases a staff report offering a preliminary assessment of fundamental and market factors affecting the crude oil market. The ITF's Interim Report on Crude Oil studied fundamental supply and demand factors and the roles of various market participants, and it found that fundamental supply and demand factors provide the best explanation for the recent crude oil price increases. (CFTC Press Release 5520-08, July 22, 2008). 07/24/2008 The CFTC charges Optiver Holding BV, two of its subsidiaries, and three employees, charging them with manipulation and attempted manipulation of New York Mercantile Exchange (NYMEX) Light Sweet Crude Oil, New York Harbor Heating Oil, and New York Harbor Gasoline futures contracts during March 2007. (CFTC Press Release 5521-08, July 24, 2008). 08/11/2008 The CFTC forms the Retail Foreign Currency Fraud Enforcement Task Force which is charged with investigating and litigating fraud in the off-exchange retail foreign currency market. (CFTC Press Release 5530-08, August 11, 2008). 09/11/2008 The CFTC releases a staff report with Commission recommendations on activities of swap dealers and commodity index traders. The report's findings and recommendations are based on information obtained from the June 2008 special call that Commission staff issued to quantify key components of the over-the-counter (OTC) swap and commodity index markets. (CFTC Press Release 5542-08, September 11, 2008). 11/13/2008 The CFTC, the Board of Governors of the Federal Reserve, and the Securities and Exchange Commission (SEC) enter into a Memorandum of Understanding (MOU) to establish a framework for consultation and information sharing on regulatory issues related to central counterparties for credit default swaps. 12/23/2008 The CFTC announces that the CME Group has certified a proposal to clear certain OTC credit default swaps through the CME clearing organization. (CFTC Press Release 5592-08, December 23, 2008). 02/04/2009 The CFTC announces the launch, on a six-month trial basis, of a new monthly report: "This Month in Futures Markets." (CFTC Press Release 5607-09, February 4, 2009). 03/09/2009 The CFTC announces the formation of the Subcommittee on Convergence in Agricultural Commodity Markets, a new Subcommittee of the CFTC's Agricultural Advisory Committee. The Subcommittee on Convergence will identify the causes of poor cash-futures convergence in select agricultural commodity markets and advise the CFTC on actions to remedy the situation. (CFTC Press Release 5629-09, March 9, 2009). 03/23/2009 The CFTC approves final rules and rule amendments that increase the Commission's oversight of exempt commercial markets (ECMs). The rules implement provisions of the CFTC Reauthorization Act of 2008, which created a new regulatory category - ECMs with significant price discovery contracts (SPDCs) - and subjected these electronic trading facilities to additional regulatory and reporting requirements. (CFTC Press Release 5636-09, March 23, 2009). 07/27/2009 The CFTC issues an order finding that the Henry Financial LD1 Fixed Price contract - a natural gas contract traded on the IntercontinentalExchange, Inc. (ICE), an ECM - performs a significant price discovery function. This Order represents the Commission's first use of its new regulatory authority over ECMs with respect to their SPDCs. (CFTC Press Release 5683-09, July 27, 2009). 07/28/2009 The CFTC holds three public hearings to discuss speculative position limits and exemptions in energy markets. (CFTC Press Release 5681-09, July 21, 2009). 08/19/2009 The CFTC withdraws two no-action letters that provided relief for two commodity pool operators/commodity trading advisors from federal agricultural speculative positions limits. (CFTC Press Release 5695-09, August 19, 2009). 09/04/2009 The CFTC begins disaggregating the data in its weekly Commitments of Traders (COT) reports and begins releasing, on a quarterly basis, data collected from an ongoing special call on swap dealers and index traders in the futures markets. Rather than breaking traders into two broad categories: commercial and noncommercial, the new COT reports break the data into four categories of traders: Producer/Merchant/Processor/User; Swap Dealers; Managed Money; and Other Reportables. (CFTC Press Release 5710-09, September 2, 2009) 10/16/2009 The CFTC and SEC issue a joint report identifying areas where the agencies' regulatory schemes differ and recommending actions to address those differences. The report includes 20 recommendations to enhance enforcement powers, strengthen market and intermediary oversight and improve operational coordination. (CFTC Press Release 5735-09, October 16, 2009). 01/14/2010 The CFTC votes at an open meeting to publish in the Federal Register a proposal to set position limits for futures and option Contracts in the major energy markets. (CFTC Press Release 5771-10, January 7, 2010) 03/25/2010 The CFTC holds an open meeting to examine the trading of futures and options in the precious and base metals markets. (CFTC Press Release 5782-10, February 23, 2010) 04/03/2010 The CFTC Launches a new web site along with supporting web 2.0 components 04/29/2010 The CFTC issues an order filing and simultaneously settling (for a civil monetary penalty of $25 million among other things) charges that Moore Capital Management, LP, and various affiliated companies attempted to manipulate the settlement prices of platinum and palladium futures contracts on the New York Mercantile Exchange. (CFTC Press Release 5815-10, April 29, 2010) 05/06/2010 Major stock indexes and stock index futures experience a brief but severe drop in prices, falling more than 5% in a matter of minutes, only to recover a short time later. Some individual securities experience more volatility than the stock indexes. (Statement by SEC and CFTC, May 6, 2010) 05/18/2010 The staffs of the CFTC and the SEC release preliminary findings related to the unusual market events on May 6, 2010. (CFTC Press Release 5825-10, May 17, 2010) 05/24/2010 The newly formed Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues holds its first meeting. (CFTC Press Release 5823-10, May 17, 2010) 06/14/2010 The CFTC approves the first futures contracts based on motion picture box office receipts after finding that the terms and conditions of Media Derivatives, Inc.'s proposed Weekend Motion Picture Revenue futures and options contracts do not violate the Commodity Exchange Act or CFTC regulations. (CFTC Press Release 5834-10, June 14, 2010)