Appendix 4 – FY 2013 Planned Objectives by Strategic Goal (continued)
Table of Contents >
Goal One: Protect the Public and Market Participants by Ensuring Market Integrity; Promoting Transparency; Competition and Fairness; and Lowering Risk in the System
Derivatives markets are designed to provide a means for market users to offset price risks inherent in their businesses and to act as a public price discovery platform from which prices are broadly disseminated for public use. For derivatives markets to fulfill their role in the national and global economy, they must operate efficiently and fairly, and serve the needs of market users. The markets best fulfill this role when they are open, competitive and free from fraud, manipulation and other abuses such that the prices discovered on the markets reflect the forces of supply and demand.
The Commission strives to assure that Goal One is effectively met through the combined use of four oversight strategies: 1) the review of new contracts and rules and changes to contracts and rules; 2) continual surveillance of trading activity in the futures and swaps markets; 3) the review of regulated exchanges, DCMs and SEFs, to ensure that they are fulfilling their self-regulatory obligations; and, 4) the adoption of policies and strategies to promote market transparency.
Summary of Goal One Performance Indicators
Goal One: Protect the public and market participants by ensuring market integrity; promoting transparency; competition; and fairness; and lowering risk in the system.
Outcome 1.1: Ensure the markets are structured to reflect the forces of supply and demand for the underlying commodity and are free from manipulation, disruptive activity, and abusive trading practices.
Strategy 1.1.1: Develop automated surveillance systems to monitor market conditions and trader activity,
and develop an alert and case management system to identify and track potential trading violations.
| Performance Measure 1.1.1.1: Implement automated position limit alerts for futures, option, and swaps markets. |
Plan |
Actual |
| FY 2011 |
Implement automated position limit monitoring for all additional commodities under CFTC position limits for futures and options traded on DCMs. |
100% |
N/A |
| FY 2012 |
Implement automated position limit monitoring for all commodities under CFTC position limits for the swaps market using large trader reporting data. |
100% |
|
| FY 2013 |
N/A |
N/A |
|
| Performance Measure 1.1.1.2: Implement automated surveillance alerts and a case management system. |
Plan |
Actual |
| FY 2011 |
Implement four automated market alerts. |
100% |
70% |
| FY 2012 |
Implement automated market profile alerts. Integrate swaps market data into two automated market alerts. |
100% |
|
| FY 2013 |
Implement automated market profile alerts for swaps markets. |
100% |
|
| Performance Measure 1.1.1.3: Implement automated trading violation alerts and a case management system. |
Plan |
Actual |
| FY 2011 |
Implement five automated trade violation alerts. |
100% |
20% |
| FY 2012 |
Implement five automated trade violation alerts. |
100% |
|
| FY 2013 |
Implement four automated trade violation alerts. |
100% |
|
Strategy 1.1.2: Review and update the content requirements of currently used trader reporting
forms and identify potential new reporting forms or methods.
| Performance Measure 1.1.2.1: Review information requirements of current and proposed forms. |
Plan |
Actual |
| FY 2011 |
Conduct internal review and update current reporting forms. Collaborate with industry committee to develop recommendations for ownership and control information related to exchange-traded futures and options. |
100% |
50% |
| FY 2012 |
Implement ownership and control reporting standards for futures and option markets. Implement reportable trader standards for swaps traders. |
100% |
|
| FY 2013 |
N/A |
N/A |
|
Strategy 1.1.3: Increase efficiency and reduce errors through the adoption of electronic filing of CFTC reporting forms.
| Performance Measure 1.1.3.1: Transmit information and consult with the Office of Data and Technology (ODT) to implement electronic filing of forms. |
Plan |
Actual |
| FY 2011 |
Transmit information requirements to ODT for revised trader reporting forms. |
100% |
50% |
| FY 2012 |
Fully deploy electronic filing of trader reporting forms. |
100% |
|
| FY 2013 |
Fully deploy information systems for ownership and control reporting. Fully deploy information systems for reportable trader standards for swap traders. |
100% |
|
Strategy 1.1.4: Review all contracts that have significant market impact for compliance with core principles in a timely manner.
| Performance Measure 1.1.4.1: Percentage of contracts that are reviewed, in a timely manner, following a finding of market significance, and determined to be in compliance with core principles or referred back to exchange for modification. |
Plan |
Actual |
| FY 2011 |
|
100% |
2% |
| FY 2012 |
|
100% |
|
| FY 2013 |
|
100% |
|
Strategy 1.1.5: Timely review of new rules and rule changes for compliance with core principles.
| Performance Measure 1.1.5.1: Rule submissions are reviewed and a determination is made regarding compliance with the CEA, or referred back to the exchange for correction, as amended by the Dodd-Frank Act and Commission regulations within the required 10-day or 90-day time period. |
Plan |
Actual |
| FY 2011 |
|
100% |
77% |
| FY 2012 |
|
100% |
|
| FY 2013 |
|
100% |
|
Strategy 1.1.6: Ensure that new exchanges adopt rules that comply with core principles.
| Performance Measure 1.1.6.1: DCM and SEF applications are reviewed and a determination is made regarding compliance with core principles within statutory time frames. |
Plan |
Actual |
| FY 2011 |
|
100% |
100% |
| FY 2012 |
|
100% |
|
| FY 2013 |
|
100% |
|
Outcome 1.2: Ensure that U.S. DCMs and SEFs have the systems, procedures, and resources necessary for effective self-regulation and ongoing compliance with core principles.
Strategy 1.2.1: Conduct examinations of individual DCMs and SEFs to ensure the structural sufficiency of
their self-regulatory and core principles compliance programs.
| Performance Measure 1.2.1.1: Percentage of major DCMs and SEFs reviewed, during the year. |
Plan |
Actual |
| FY 2011 |
|
100% |
40% |
| FY 2012 |
|
100% |
|
| FY 2013 |
|
100% |
|
| Performance Measure 1.2.1.2: Percentage of non-major DCMs and SEFs reviewed, during the year. |
Plan |
Actual |
| FY 2011 |
|
100% |
20% |
| FY 2012 |
|
100% |
|
| FY 2013 |
|
100% |
|
Strategy 1.2.2: Conduct regular reviews of DCMs’ and SEFs’ automated systems and business continuity and disaster recovery programs for compliance with core principles related to market continuity.
| Performance Measure 1.2.2.1: Percentage of major DCMs and SEFs reviewed, during the year. |
Plan |
Actual |
| FY 2011 |
|
100% |
80% |
| FY 2012 |
|
100% |
|
| FY 2013 |
|
100% |
|
| Performance Measure 1.2.2.2: Percentage of non-major DCMs and SEFs reviewed, during the year. |
Plan |
Actual |
| FY 2011 |
|
33% |
0% |
| FY 2012 |
|
33% |
|
| FY 2013 |
|
33% |
|
Outcome 1.3: Ensure that U.S. DCMs and SEFs have the systems, procedures, and resources necessary for effective self-regulation and ongoing compliance with core principles.
Strategy 1.3.1: Develop and publish swaps market reports.
| Performance Measure 1.3.1.1: Publish reports for swaps markets activity. |
Plan |
Actual |
| FY 2011 |
N/A |
N/A |
N/A1 |
| FY 2012 |
Develop and test aggregation methods to group interest rate swap products. |
100% |
|
| FY 2013 |
Develop and test aggregation methods to group all commodity swap products under CFTC position limits. Publish swaps market report for interest rate swap products. Publish Dodd-Frank Act required semiannual and annual swaps reports for all interest rate swap products. |
100% |
|
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