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c05 JWBK195-Saettele May 31, 2008 11:54 Printer: Yet to come
Sentiment Indicators 73
Commodity Futures Trading Commission (CFTC or Commission), an
independent agency with powers greater than those of its predeces-
sor agency, the Commodity Exchange Authority. For example, while
the Commodity Exchange Authority only regulated agricultural com-
modities enumerated in the Commodity Exchange Act, the 1974 act
granted the CFTC exclusive jurisdiction over futures trading in all
commodities.
CURRENCY FUTURES HISTORY
Following the collapse of Bretton Woods, a group of commodity traders
at the Chicago Mercantile Exchange (CME) naturally wanted to take
advantage of free floating currencies by trading in them. Unfortunately
for them, they did not have access to the inter-bank market. Refusing to
give up and possibly miss big profits by not trading in the new arena, the
group of traders established the International Monetary Market (IMM),
which is now a division of the CME. On May 16, 1972, seven currency
futures contracts began trading as the first financial futures. Previously
limited to large commercial banks and their corporate customers, now
individuals, investment funds, governments, and just about anyone else
could buy and sell currencies for future delivery or cash settlement. Of
course, anyone who opens a forex trading account with a f orex dealer
member has access to the spot market ...