The focus of this goal is the marketplace. If U.S. commodity futures and option markets are protected from, and are free of, abusive practices and influences, they will fulfill their vital role in the U.S. market economy, accurately reflecting the forces of supply and demand and serving market users by fulfilling an economic need.
Monitoring market activity represents one of the ways the Commission seeks to protect the economic function of the markets. Market surveillance is conducted to detect attempted manipulation and other abusive practices that could undermine the capacity of these markets to perform their economic function. The Commission takes preventive measures to ensure that market prices accurately reflect fundamental supply and demand conditions, including the routine daily monitoring of large trader positions, futures and cash prices, price relationships, and supply and demand factors in order to detect threats of price manipulation.
The following table summarizes the FY 2009 investment and overall performance results for Strategic Goal One. In addition, FY 2009 performance results are compared against the FY 2009 targets and FY 2008 actual results.
|Budget Authority||Performance Results||Percentage|
|Not met but improved over prior years||11%|
|Results not demonstrated||11%|
|Outcome Objectives and Performance Measures||Met/Not Met||Change (+/-) from
|Change (+/-) from
|1.1 Markets that accurately reflect the forces of supply and demand for the underlying commodity and are free of disruptive activity.|
|1.1.1. Percentage growth in market volume.||Not Met||-43.5%||-19.5%|
|1.1.2. Percentage of novel or innovative market proposals or requests for CFTC action addressed within six months to accommodate new approaches to, or the expansion in, derivatives trading, enhance the price discovery process, or increase available risk management tools.||Met||0%||-25%|
|1.1.3. Percentage increase in number of products traded.||Exceeded||+12.7%||+11.3%|
|1.1.4.a. Percentage of new exchange applications completed within expedited review period.||Results Not
|1.1.4.b. Percentage of new clearinghouse organization applications completed within expedited review period.||Results Not
|1.1.5. Percentage of new contract certification reviews completed within three months to identify and correct deficiencies in contract terms that make contracts susceptible to manipulation.||Not Met||-11%||-11%|
|1.1.6. Percentage of rule change certification reviews completed within three months, to identify and correct deficiencies in exchange rules that make contracts susceptible to manipulation or trading abuses or result in violations of law.||Not Met||-13%||-13%|
|1.2 Markets that are effectively and efficiently monitored to ensure early warning of potential problems or issues that could adversely affect their economic vitality.|
|1.2.1 Percentage of derivatives clearing organization applications demonstrating compliance with CFTC Core Principles.||Met||0%||+100%|
|1.2.2 Ratio of markets surveilled per economist.||Exceeded||+2||0|
|1.2.3 Percentage of contract expirations without