Release: #4600-02
For Release: February 1, 2002


Washington, D.C. —The Commodity Futures Trading Commission (CFTC) announced today that it will restructure its staff to facilitate the implementation of the Commodity Futures Modernization Act of 2000.

Under the restructuring, the functions previously performed by the Divisions of Trading and Markets and Economic Analysis will be performed by two new divisions and one new office. They will be the Division of Market Oversight, the Division of Clearing and Intermediary Oversight and the Office of the Chief Economist.

The Division of Market Oversight will have regulatory responsibility for initial recognition and continuing oversight of trade execution facilities, including new Registered Futures Exchanges and Derivatives Transaction Execution Facilities. Continuing oversight will include the Commission’s market surveillances functions, trade practice reviews and investigations, rule enforcement reviews, review of product-related and market-related rule amendments, and associated product and market-related studies. Other related functions will include rulemakings, interpretations and no-actions pertaining to market operations and reviews of the National Futures Association (NFA) relating to market functions.

The Division of Clearing and Intermediary Oversight will have regulatory responsibility for oversight of clearing and intermediaries. Its functions will include review of Registered Clearing Organizations’ applications, financial integrity reviews, customer fund protection reviews, stock-index margin reviews, registration and fitness of intermediaries, sales practice reviews, NFA oversight related to intermediaries and clearing operations, and foreign market access by intermediaries.

The Office of the Chief Economist will be an independent office with responsibility for providing expert economic advice to the Commission. Its functions will include policy analysis, economic research, expert testimony, education and training.

Finally, the Offices of Public Affairs and Legislative and Intergovernmental Affairs will be combined to form the Office of External Affairs. This office, as part of the Office of the Chairman, will perform, among other things, the coordination of all agency dealings with the media, the Congress, the White House, other government entities, and interested industry organizations.

In commenting on the restructuring, Chairman Newsome said, “Given the significant modernization effort of futures regulation initiated by our Commission and by the Congress with the passage of the CFMA, we believed an analysis of the existing staff structure was in order. Today’s announcement reflects changes that will allow the Commission to fulfill its new mission and to do so efficiently and responsibly.”

At this time, the Commission will not be changing the functions of the Offices of General Counsel and Executive Director. However, under the reorganization, the Division of Enforcement will assume responsibility for the collection of civil money penalties.

The reorganization, and attendant changes in responsibilities, will be effective upon the selection of divisional leadership, which is expected in the near future.