|2007||$98 Million Actual Obligations — Decreased Staff by 56|
|2008||$111 Million Actual Obligations — Increased Staff by 12|
|2009||$146 Million Actual Obligations — Increased Staff by 49|
|2010||$168 Million Actual Obligations — Increased Staff by 107|
|2011||$193 Million Actual Obligations — Increased Staff by 61|
1 In FY 2007, CFTC had 437 FTEs which was a historic low. (back to text)
2 Staffing is climbing back from historic lows. In FY 2011, CFTC had 666 FTEs (669 on-board). (back to text)
The FY 2011 - 2015 Strategic Plan, released in February, 2011, incorporated enactment of the Dodd-Frank Act. Congress gave this swaps oversight responsibility to the CFTC because of its strengths in regulating the futures and options markets. While the swaps marketplace has only been around since the 1980s, the futures marketplace has existed since the 1860s has been regulated by the CFTC and its predecessor agencies since the 1920s.
The goals of the CFTC largely remain consistent with prior years with the regulation of swaps being incorporated within the current regulatory structure applied to the futures and options markets.
|Goal 1||Protect the public and market participants by ensuring market integrity, promoting transparency, competition and fairness and lowering risk in the system.|
|Goal 2||Protect the public and market participants by ensuring the financial integrity of derivatives transactions, mitigation of systemic risk, and the fitness and soundness of intermediaries and other registrants.|
|Goal 3||Protect the public and market participants through a robust enforcement program.|
|Goal 4||Enhance integrity of U.S. markets by engaging in cross-border cooperation, promoting strong international regulatory standards, and encouraging ongoing convergence of laws and regulation worldwide.|
|Goal 5||Promote Commission excellence through executive direction and leadership, organizational and individual performance management, and effective management of resources.|
The following section includes a high-level discussion of each of the five strategic goals, as well as a tactical goal for Dodd-Frank rule making, and the related key results (shortfalls and successes). The selected accomplishments described below demonstrate significant progress made in FY 2011 toward the achievement of the Commission’s mission and strategic goals. However, progress in some areas was hampered due to a significant number of staffing resources that were reallocated from existing authorities to implementing the new authorities under the Dodd-Frank Act.
Performance measures are rated as: Exceeded, Met, Not Met, or Results not Demonstrated. Of the Commission’s 54 performance measures, nine were not measurable in FY 2011 due to their dependence on final rulemakings that have not been completed and are excluded from the following results. Overall results, based on data currently available, for the Commission’s performance measures are depicted in the following table:
|Fiscal Year||Met/Exceeded||Not Met||Results Not
The Commission’s Annual Performance Report (APR), to be issued in February 2012 as part of its Congressional Budget Justification in conjunction with the President’s Budget, will present more detailed analysis of performance results for FY 2011.
The focused rule writing efforts required by the Dodd-Frank Act are not being treated as a “Strategic Goal”, but as a tactical goal that has an Objective, Strategy and Performance Measure. Approximately 20 to 30 percent of the CFTC staff was diverted from their usual functions to work on Dodd-Frank Act related activities throughout FY 2011. The CFTC began preparing for the task of writing rules for the swaps marketplace by identifying 30 areas of rulemaking to implement the Dodd-Frank Act. The CFTC has found that some of these areas only required one rule, while others required more. Staff teams were assigned to each rule grouping. Where proposed and interim final rules have been issued, the Commission is affording as much opportunity as practicable for public comment both through written submissions and through public meetings. The Commission fully considers the comments and continues to offer this opportunity as additional proposed rules are developed. The CFTC has and will continue to work with the SEC and other regulators to maximize consistency, minimize overlap or duplication, and develop the best possible final rules.
The Dodd-Frank Act set a timeframe of 360 days (or less in a few instances) for completion of the rules, but the Commission was unable to accomplish this for several reasons:
Despite the above limitations, the Commission was able to accomplish the following Dodd-Frank Act related rulemaking tasks within the 360 day time frame:
As of this writing, the CFTC anticipates completion of the vast majority of the rules by March 2012 and essentially all rules by July 2012 - within 24 months of enactment of the Dodd-Frank Act.