Which of the following is a key role of the Commodity Futures Trading Commission (CFTC)?

The Commodity Futures Trading Commission (CFTC) plays a crucial role in maintaining the integrity of the commodity futures and options markets in the United States. One of its key responsibilities is to supervise designated contract markets (DCMs). This involves regulating trading on these platforms to ensure compliance with established laws and regulations, promoting transparency, and protecting market participants from fraud and manipulation.

By overseeing DCMs, the CFTC helps to ensure that these markets operate fairly and efficiently, thereby fostering a stable trading environment. This supervision includes monitoring market activities, enforcing the compliance of market participants with trading rules, and taking action when irregularities or misconduct are observed.

In contrast, the other options do not accurately reflect the primary functions of the CFTC. While the commission may influence market practices and regulations, it does not set commodity prices. It also does not engage in direct trading of commodities itself, as that would create a conflict of interest with its regulatory role. Finally, the issuance of commodities licenses is usually handled by other entities and not a core function of the CFTC.