CFTC chairman calls for more competition

Reuben Jeffery, chairman of the US Commodity Futures Trading Commission (CFTC), has underscored the importance of competition as a critical factor in maintaining the future success of the markets. "We must help foster a market environment that invites competition and innovation," he told delegates attending a New York event sponsored by several trade associations, including the Futures Industry Association.

"It is not the place of the CFTC to pick winners or losers," said Jeffery. "Nor is it our function to design or engineer the manner in which markets should respond to competitive pressures. As with other free markets, innovation in the futures markets will draw out the best products, providers and business methods," he added. According to the chairman, another core enforcement priority is to target those who take advantage of retail customers, which he described as "the most vulnerable participants in the futures markets".

Since the passage of the Commodity Futures Modernization Act of 2000, which among other things permitted futures on individual securities, the CFTC has prosecuted 325 companies alleging illegal activity that affected more than 23,000 retail customers.

Jeffrey also mentioned the CFTC will sponsor roundtables and hearings on the issue of self-regulatory organisations (SRO) early next year. On November 21, the CFTC requested public comment on its ongoing review of self regulation and SROs.