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PERFORMANCE MEASURE 4.1.1.1 Days allotted for acknowledgment of incoming requests for enforcement assistance from our international counterparts pursuant to our information sharing arrangements. (Number of Days)

Lead Program Office: Division of Enforcement (DOE) Data Source: Office of Chief Counsel (OCC) Database Verification: Dated correspondence to international counterparts
ACTUAL FY 2011	PLAN FY 2011	PLAN FY 2012	PLAN FY 2013	PLAN FY 2014	PLAN FY 2015
1	5	4	3	2	2

The performance target was exceeded for FY 2011. The Commission handled over 530 international requests and referrals, an approximate increase of 20% over FY 2010. The Commission also entered into bilateral cooperative enforcement/information sharing arrangements with more than twenty-five (25) foreign authorities. In 2002, the Commission entered into a multilateral information sharing arrangement established by IOSCO which has become the gold standard for such international memoranda of understanding (MOU). As of January 1, 2011, seventy-two (72) IOSCO members had signed the MOU. In addition, the Commission is authorized to cooperate and exchange information with foreign authorities worldwide (both with MOU partners and with other, non-MOU authorities) on a case-by-case basis.

Requests and Referrals

2006	2007	2008	2009	2010	2011
89	184	173	285	433	538

PERFORMANCE MEASURE 4.1.1.2 Regular issuance of outgoing international requests for enforcement assistance and referrals made by the CFTC to foreign regulators pertaining to matters involving their jurisdictions.

Lead Program Office: Division of Enforcement (DOE) Data Source: Pending Verification: Pending
ACTUAL FY 2011	PLAN FY 2011	PLAN FY 2012	PLAN FY 2013	PLAN FY 2014	PLAN FY 2015
TBD	TBD	TBD	TBD	TBD	TBD

While this performance measure continues to develop, it should be noted that the sharp increase in the number of outgoing international requests (490 in 2011 versus 243 in 2009) is consistent with the increase in investigations in general (452 in FY 2011 versus 251 in FY 2009). It is also reflective of the increase in the number of enforcement matters with international connections, both that the Commission is investigating and prosecuting and that it ultimately refers to another jurisdiction. Matters continue to involve multiple jurisdictions.

Enforcement filed a total of 99 cases in FY 2011. Office of Chief Counsel (OCC) obtained international assistance in 26 of the cases. In the matters where OCC obtained assistance, the following types of documents or assistance were requested:

• bank records
  
  
• referrals
  
  
• assistance with service of process
  
  
• corporate records
  
  
• registration information
  
  
• investigative files
  
  
• testimony
  
  
• provide notice of Statutory Restraining Order/asset freeze
  
  
• Internet Protocol records
  
  
• permission to share with criminal authority

PERFORMANCE MEASURE 4.2.1.1 Number of international regulatory and standard-setting working groups in which the Commission participates. (Number of Working Groups)

Lead Program Office: Office of International Affairs (OIA) Data Source: OIA Bi-Weekly Status Reports; IOSCO Publication Index Verification: Deputy Director Approval
ACTUAL FY 2011	PLAN FY 2011	PLAN FY 2012	PLAN FY 2013	PLAN FY 2014	PLAN FY 2015
12	9	9	9	9	9

The performance target was exceeded for FY 2011. One of the Commission's primary pathways for influencing the development of global international standards is through its participation in the Technical Committee of the International Organization of Securities Commissions (IOSCO), its numerous standing committees and task forces, and in the Council of Securities Regulators of the Americas (COSRA). Participation in COSRA allows the CFTC to influence development of principles within IOSCO, as COSRA also functions as the North American Regional Committee of IOSCO and therefore, has a collective voice in establishing IOSCO's policies.

The Commission's participation within IOSCO helped influence final reports in the areas of secondary markets, intermediaries, enforcement, and collective investment schemes, as well as OTC derivatives and data aggregation, central counterparty (CCP) standards, and principles of supervision for commodity futures markets. Final reports that describe standards or principles or otherwise provide regulatory guidance become art of the international financial architecture that is subject to assessment by the International Monetary Fund (IMF) through its Financial Sector Assessment Program (FSAP). The focus has been on incorporating the Commission's high regulatory approach into these internationals standards. Participation also helps foster international harmonization. In this regard, the Commission participated in the IOSCO Task Force that revised the Methodology that is used by the IMF for FSAPs and for "peer-reviews" organized by IOSCO in response to recommendations by the Financial Stability Forum.

During the fiscal year Commission staff participated in the development of IOSCO reports on: principles for the regulation and supervision of commodity derivatives markets, OTC derivatives trading, data reporting and aggregation requirements, regulatory issues raised by the impact of technological changes on market integrity and efficiency, principles for dark liquidity, survey on regimes for the protection, distribution and/or transfer of client assets, principles for financial market infrastructure (addressing, among other things, CCP standards), principles on suspensions of redemptions in collective investments schemes, and principles on point of sale disclosures.

PERFORMANCE MEASURE 4.3.1.1 Number of non-U.S. regulators trained.

Lead Program Office: Office of International Affairs (OIA) Data Source: Technical Assistance Internal System Verification: Deputy Director Review / Approval
ACTUAL FY 2011	PLAN FY 2011	PLAN FY 2012	PLAN FY 2013	PLAN FY 2014	PLAN FY 2015
225	60	65	70	75	751
1 The disparity between actual and plan is the result of a decision to broaden the range of activities that constitute technical assistance (e.g., to include visits by foreign regulators to the Commission for actual technical discussions with staff). This similarly affects previous estimates for future fiscal year growth, and is reflected in the new targets shown in the performance chart. These are proposed at this time and will go through a vetting process prior to adoption. (back to text)

The performance target was exceeded for FY 2011. The Commission coordinates a variety of technical assistance activities: visits by foreign regulators for discussions on a variety of technical regulatory matters, on-site missions to share regulatory approaches with foreign regulators and market authorities, secondments of foreign staff, and the annual symposium and training seminar for foreign regulators.²

The government of Ethiopia requested and funded an on-site technical assistance program during FY 2011. The Commission travelled to Ethiopia to deliver a one week program on agricultural commodity futures regulation to more than 50 staff of the Ethiopian Commodity Exchange Authority (ECEA) and the Ethiopian Commodity Exchange. This was the third program requested by the ECEA. The annual symposium and training seminar attracted 53 participants. The symposium, which is the cornerstone of the Commission's technical assistance program, focused on current topics such as the impact of high frequency trading on markets, clearing OTC derivatives and the role of financial regulators in monitoring and addressing systemic risk. The Commission also continued to place foreign secondees with both the New York and Chicago regional offices.

Success of these programs is displayed in that despite the financial crisis, foreign regulators continued to allocate funds in their training budgets to enable attendance to Commission programs. The annual symposium and training seminar routinely collects participant evaluations of the speakers and overall program, which are evaluated for purposes of improving the program. The comments received have generally characterized the training seminar very highly.

It is anticipated that this status quo will continue for the foreseeable future. Nonetheless, it is recognized that a robust program of technical assistance has been a very cost-effective means to share the Commission's regulatory approaches and in turn elevate the standards for derivatives regulation. The Commission has been viewed internationally as a thought leader in futures regulation and undoubtedly will be viewed similarly with regard to OTC derivatives regulation. The Commission will continue to operate its technical assistance program efficiently and cost effectively.

 

 

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