The explosive growth in the futures industry provides many benefits to the U.S. economy, but the risk of fraud and manipulation is always present. The trend toward electronic trading platforms and the expanding complexity of trading instruments have challenged the Commission to reconfigure its ability to identify, investigate, and take action against parties involved in violating applicable laws and regulations. If evidence of criminal activity is found, matters are referred to state or Federal authorities for criminal prosecution.
Over the years, the Commission has taken action in a number of cases involving manipulation or attempted manipulation of commodity prices. A variety of administrative sanctions, such as bans on futures trading, civil monetary penalties, and restitution orders, are available to the Commission. The Commission may also seek Federal court injunctions, asset freezes, and orders to disgorge ill-gotten gains.
An increasing segment of the population has money at risk in the futures markets, either directly or indirectly through pension funds, or ownership of shares in publicly held companies that participate in the markets.
Commission staff work to protect market users and the public by promoting compliance with, and deterring violations of, the CEA and Commission regulations. The Division of Enforcement (DOE) investigates potential misconduct, brings administrative and civil injunctive enforcement actions to prosecute such misconduct, seeks sanctions against wrongdoers, and publicly reports the outcome of those enforcement actions. The majority of the work in this area involves investigating and prosecuting manipulation, attempted manipulation, and fraud. The Commission’s enforcement actions send a message to industry professionals and participants about the kinds of conduct that will not be tolerated.
The following table summarizes the FY 2009 investment and overall performance results for Strategic Goal Two. 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||8%|
|Results not demonstrated||N/A|
|Outcome Objectives and Performance Measures||Met/Not Met||Change (+/-) from
|Change (+/-) from
|2.1 Violations of Federal commodities laws are detected and prevented.|
|2.1.1. Number of enforcement investigations opened during the fiscal year.||Exceeded||+109||+36|
|2.1.2. Number of enforcement cases filed during the fiscal year.||Met||0||+10|
|2.1.3. Percentage of enforcement cases closed during the fiscal year in which the Commission obtained sanctions (e.g., civil monetary penalties, restitution and disgorgement, cease and desist orders, permanent injunctions, trading bans, and registration restrictions).||Met||0%||+1%|
|2.1.4. Cases filed by other criminal and civil law enforcement authorities during the fiscal year that included cooperative assistance from the Commission.||Exceeded||+20||+13|
|2.2 Commodity professionals meet high standards.|
|2.2.1. Percentage of self-regulatory organizations that comply with CFTC Core Principles.||Met||0%||0%|
|2.2.2. Percentage of derivatives clearing organizations that comply with CFTC Core Principles.||Met||0%||0%|
|2.2.3. Percentage of professionals compliant with standards regarding testing, licensing, and ethics training.||Met||0%||0%|
|2.2.4. Percentage of self-regulatory organizations that comply with requirement to enforce their rules.||Met||0%||0%|
|2.2.5. Percentage of total requests for guidance and advice receiving CFTC response.||Met||0%||+15%|
|2.3 Customer complaints against persons or firms registered under the Act are handled effectively and expeditiously.|
|2.3.1.a Percentage of filed complaints resolved within one year of the filing date for Voluntary Proceedings.||Not Met||-17%||+16%|
|2.3.1.b Percentage of filed complaints resolved within one year and six months of the filing date for Summary Proceedings.||Exceeded||+20%||+23%|
|2.3.1.c Percentage of filed complaints resolved within one year and six months of the filing date for Formal Proceedings.||Exceeded||+3%||+20%|
|2.3.2 Percentage of appeals resolved within six months.||Exceeded||+30%||-16%|