The Commission reviews new product filings as well as issues no-action letters. The CFTC's traditional scope of work includes reviewing new futures and options contract filings, reviewing contract rule submissions, and developing new rules and policies to accommodate innovations in the industry. Currently, the Commission conducts due diligence reviews of new contract filings to ensure that the contracts are not readily susceptible to manipulation or price distortion, and that the contracts are subject to appropriate position limits or position accountability. The Commission also analyzes amendments to contract terms and conditions to ensure that the amendments do not render the contracts readily susceptible to manipulation and do not otherwise affect the value of existing positions. In order to prioritize work with its constrained staffing, the Commission implemented a procedure that assigns greater review priority to contracts that have achieved certain thresholds of trading volume and open interest.
The Commission also has responsibility for reviews of aggregate position limits for physical commodity derivatives. Because it has the authority to gather data and impose regulations across trading venues, the Commission is uniquely situated to establish uniform position limits and related requirements for all economically-equivalent derivatives.
In addition, the Commission has several new product-review responsibilities under the Dodd-Frank Act. The Commission will need to evaluate transaction and pricing data collected by SDRs. This data will be used by the Commission to determine appropriate block trade threshold levels that registered SEFs, DCMs, and market participants may use to delay public reporting of swap transaction data. The Commission must also evaluate market data and contract characteristics to determine whether a swap contract that is listed on a DCM or SEF has been "made available to trade." The Commission also will be performing mandatory clearing determinations, and assessing swaps presented to DCOs to determine their acceptability for clearing.
Organizationally, the Commission's activities related to products reviews and assessment of product-related rules will support the requirements of five Divisions:
|FTE||Salaries and Expenses||IT||Total|
|Clearing and Risk||15||3,580||0||3,580|
|Data and Technology||0||0||950||950|
Product Reviews Request by Division