Fundamental changes in the technology, products and platforms of U.S. futures trading have increased the Commission's need for sophisticated technology, specialized skills and additional resources to keep pace.

In the futures industry, exchanges, in particular, have undergone a decade-long transition from geographically-defined trading pits to electronic platforms with global reach.  From 2000 to 2010, electronic trading grew from approximately nine percent of volume to 78 percent on all U.S. DCMs.  Over the same time period, the number of actively-traded futures and options contracts listed on U.S. exchanges increased more than nine-fold, from approximately 266 contracts in 2000 to approximately 2,466 contracts in 2010.  Total DCM futures and options trading volume rose from approximately 580 million contracts in 2000 to approximately 3.11 billion in 2010, an increase of more than 436 percent.

Regulated Entities by Mission Activity

The Commission's regulatory scope encompasses trading entities, clearing entities, and data repositories and the sole registered futures association, NFA.  For the overwhelming number of market participants, the Commission's role is as a second-line regulator, where the agency relies on the DSROs to perform critical regulatory responsibilities.  The Commission's direct regulatory activities in registration, product reviews, and examinations are primarily focused on the DCMs, DCOs, SDRs, NFA, and soon, SEFs.  The Commission also conducts direct examinations of intermediary trading entities on a "for cause" basis and periodic routine  direct examinations as resources are available.  While the DSRO's are obligated to conduct surveillance and enforcement activities for entities under their purview, the Commission conducts surveillance and enforcement activities across all market participants.

A cross-walk of regulated entities and registrants and CFTC's mission activities follows.  Activities and entities for which CFTC is the first-line regulator are identified as "CFTC".  Activities and major entities for which the agency is the second-line regulator are identified as "SRO/CFTC", "DSRO/CFTC" or "NFA/CFTC", where DSRO is the acronym for Designated SRO.  Activities and entities for which the CFTC has delegated responsibility to the NFA are identified as "NFA".

Matrix of U.S. Registered Entities and Registrants by CFTC Mission Activity

Entity	Acronym	CFTC Mission-Activity
		Registration and Registration Compliance	Product Reviews	Surveillance	Examinations	Enforcement	Economic and Legal Analysis
Trading Entities
Designated Contract Market	DCM	CFTC	CFTC	CFTC	CFTC	CFTC	CFTC
Swap Execution Facility	SEF	CFTC	CFTC	CFTC	CFTC	CFTC	CFTC
Foreign Board of Trade	FBOT	CFTC	CFTC	N/A	N/A	CFTC	CFTC
Clearing Entities
Derivatives Clearing Organization	DCO	CFTC	CFTC	CFTC	CFTC	CFTC	CFTC
Systemically Important Derivatives Clearing Organization	SIDCO	CFTC	CFTC	CFTC	CFTC/ Federal Reserve	CFTC	CFTC
Data Repositories
Swap Data Repository	SDR	CFTC	N/A	N/A	CFTC	CFTC	CFTC
Registered Futures Association
National Futures Association	NFA	CFTC	N/A	N/A	CFTC	CFTC	CFTC
Intermediaries
Futures Commission Merchant	FCM	NFA	N/A	DSRO/CFTC	DSRO/CFTC	DSRO/CFTC	CFTC
Swap Dealer	SD	NFA	CFTC	NFA/CFTC	NFA/CFTC	NFA/CFTC	CFTC
Major Swap Participant	MSP	NFA	CFTC	NFA/CFTC	NFA/CFTC	NFA/CFTC	CFTC
Retail Foreign Exchange Dealer	RFED	NFA	N/A	NFA/CFTC	NFA/CFTC	NFA/CFTC	CFTC
Managed Funds
Commodity Trading Advisor	CTA	NFA	N/A	NFA/CFTC	NFA	NFA/CFTC	CFTC
Commodity Pool Operator	CPO	NFA	N/A	NFA/CFTC	NFA	NFA/CFTC	CFTC
Other Registrants
Introducing Broker	IB	NFA	N/A	NFA/CFTC	NFA	NFA/CFTC	CFTC
Floor Broker	FB	NFA	N/A	CFTC	N/A	SRO/CFTC	CFTC
Floor Trader	FT	NFA	N/A	CFTC	N/A	SRO/CFTC	CFTC
Associated Person (Sales)	AP	NFA	N/A	CFTC	N/A	SRO/CFTC	CFTC

Assumptions on the Number of Regulated Entities

Number of Market Participants by Fiscal Year

Entity	Acronym	Number of Registered Entities/Registrants
		FY 2012 Actuals	FY 2013 Assumptions	FY 2014 Assumptions
Trading Entities
Designated Contract Market	DCM	16	23-26	23-26
Swap Execution Facility	SEF	0	15	15
Foreign Board of Trade	FBOT	21	21	21
Clearing Entities
Derivatives Clearing Organization	DCO	17	18	20
Clearing Member		191	200	210
Systemically Important DCO	SIDCO	2	No more than 4	No more than 4
Data Repositories
Swap Data Repository1	SDR	3	5-7	5-7
Intermediaries
Futures Commission Merchant2	FCM	128	115	115
Swap Dealer	SD	0	120	120
Major Swap Participant	MSP	0	0-6	0-6
Retail Foreign Exchange Dealer	RFED	14	12	12
Managed Funds
Commodity Trading Advisor	CTA	2,470	2,600	2,600
Commodity Pool Operator	CPO	1,172	1,800	1,800
Other Registrants
Introducing Broker	IB	1,354	1,500	1,500
Floor Broker	FB	5,650	5,600	5,600
Floor Trader	FT	1,102	1,100	1,100
Associated Person	AP	51,068	54,000	54,000

¹ Number of SDR registrants in 2012 are for those entities with provisional registration status. (back to text)

² Excludes FCMs registered as RFEDs. (back to text)

Industry Growth in Volume, Globalization and Complexity (Appendix 3)