The mission of the Division of Market Oversight (DMO) is to foster open, transparent, fair, competitive, and secure markets through clear rules and effective oversight of derivatives markets regulated by the CFTC and those markets’ participants. DMO seeks to be the foremost global oversight authority of the rapidly-evolving commodity derivatives markets.
About the Division
DMO is responsible for overseeing the health and market structure of the derivatives markets regulated by the CFTC, as well as the exchanges and facilities on which those derivatives trade. One of DMO’s primary functions is rulemaking, through which DMO develops and implements Commission regulations to promote fair, efficient, vibrant markets, and sound market structure, and to ensure that the agency’s regulations keep pace with rapidly-changing markets. DMO also analyzes global commodity and financial market developments to identify emerging risks and trends in order to support the Commission in developing sound policy.
Division in Action
DMO is organized into five branches:
The Chief Counsel Branch advises DMO on all law and policy issues affecting the Division, including the Division’s oversight of the commodity futures, options and swaps markets. The Chief Counsel branch supports all DMO rulemaking and staff action documents as well as develops complex rulemakings and staff actions on a wide range of topics affecting DMO. The branch suggests enhancements to policy to account for changes in market structure, innovation and other market developments.
The Compliance Branch is responsible for examining and assessing the adequacy of exchange and trading platforms’ self-regulatory and rule enforcement programs covering both exchange rules and Commission regulations. These exchange trading platforms are known as Designated Contract Markets (DCMs) and Swap Execution Facilities (SEFs). The branch also includes a market continuity program, which conducts oversight of DCM, SEF, and swap data repository (SDR) compliance with the cybersecurity and system safeguards requirements of the Commodity Exchange Act (CEA) and Commission regulations.
The Market Intelligence Branch is responsible monitoring the health and the market structure of U.S. futures, options and swap markets, highlighting emerging trends and identifying structural or potential systemic risks. The branch also leads critical studies in these markets and provides advice on policy, risk management, and oversight matters to the Commission, as well as shares information with various stakeholders such as Congress and the public, as appropriate. The branch is also responsible for producing various regular CFTC reports, such as the Commitments of Traders report.
The Market Review Branch is responsible for reviewing and making recommendations to the Commission regarding applications for registration or designation of SEFs, DCMs, SDRs, and foreign boards of trade (FBOTs). The branch also oversees the continued compliance of DCMs and SEFs with the CEA and Commission regulations through the review of trading rules filed by DCMs and SEFs for certification and/or approval. The branch also contributes to related rulemaking.
The Product Review Branch reviews new and existing exchange-traded derivatives, including amendments to the terms and conditions of existing contracts, for compliance with the CEA and Commission regulations, including to ensure that products are not susceptible to manipulation. The branch does so by performing economic analysis of product terms and underlying cash markets. The branch also provides technical assistance to other divisions and groups in order to advance the CFTC’s mission.
Vincent McGonagle, Director
Rachel Berdansky, Deputy Director, Compliance & Examination Branch
Rahul Varma, Acting Deputy Director & Acting Chief Market Intelligence Office, Market Intelligence Branch
Nancy Markowitz, Deputy Director, Market Review Branch