The Securities and Change Fee (SEC) and the Commodity Futures Buying and selling Fee (CFTC) are the first regulatory businesses in america accountable for overseeing the securities and derivatives markets, respectively. A core perform of each businesses is the prevention, detection, and prosecution of misleading practices that undermine market integrity and investor confidence. This contains actions resembling insider buying and selling, market manipulation, Ponzi schemes, and misrepresentation of monetary info.
Upholding market integrity by way of diligent enforcement advantages the general financial system by guaranteeing honest competitors, fostering investor belief, and allocating capital effectively. The SEC and CFTC safeguard buyers, promote market effectivity, and stop systemic threat. Traditionally, situations of unchecked fraudulent exercise have led to monetary crises and widespread financial hardship, underscoring the important function these businesses play in sustaining steady and dependable markets. The historic context illustrates the need of proactive and reactive measures to fight monetary misconduct.
