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Forward Looking—Future Business Trends & Challenges

Table Of Contents

Almost everything in the futures industry has fundamentally changed over the last 20 years—from the products that are trading to the platforms on which they are traded. As the Commission looks ahead, technology, globalization, and innovation are expected to continue to drive growth in the markets the Commission regulates.

During this time of rapid change, the Commission expects to lose most of its experienced career staff, primarily through retirement. During FY 2006, the Commission experienced its first large wave of these retirements.

From a performance perspective, the Commission has struggled to operate at the level needed to ensure that it has the resources necessary to do the job expected of it by Congress, the Administration, and the American people. The Commission must make difficult choices about how it will use its limited resources.

It is anticipated that Commission efforts will be scaled back to the extent increased productivity cannot offset anticipated resource reductions. The Commission attempts to balance its investment in four strategic goals, each focusing on a vital area of regulatory responsibility. To continue to be an effective regulator, the Commission will need to place greater reliance on risk management approaches to supervision. It will also continue to leverage needed systems and data maintained by other Federal agencies and, wherever possible, by SROs. Moving forward, the Commission will be required to confront the jurisdictional challenges created by innovation and the worldwide creation and expansion of futures and option markets. This, coupled with a wide array of new surveillance issues, is expected to significantly change the way the Commission consumes and allocates resources across its performance goals. From an operational perspective, the Commission will continue to allocate and deploy its resources in less traditional ways, as described below. As this process accelerates, the Commission seeks to transform itself along the following dimensions.

Performance Challenges





Management Challenges

Information Technology

Human Capital