For Release: December 17, 2007
CFTC Issues FY 2007 Financial Report
Third Consecutive Clean Opinion on Its Audited Financial Statements
Washington, DC – Today, Commodity Futures Trading Commission (CFTC) Acting Chairman Walt Lukken announced that, for the third consecutive year, the agency earned a clean audit opinion on its fiscal year (FY) financial statements. Moreover, the FY 2007 report shows the CFTC in substantial compliance with all financial laws and regulations, and with no material weaknesses in its internal controls.
“The agency’s role is to protect market users and the public from fraud and manipulation and to foster open, competitive, and financially sound futures and option markets. The clean audit opinion is an important indicator of how CFTC fulfills its stewardship responsibilities,” said Lukken.
The financial report is similar to a corporation’s annual report to shareholders. It presents fiscal and high-level performance results that enable the President, Congress, and the American people to assess the agency’s performance relative to its mission and includes its audited financial statements.
The CFTC is responsible for overseeing a vast array of highly complex financial futures contracts. The number of actively traded contracts on U.S. exchanges has more than quintupled in the last decade. Using a principles-based regulatory model, coupled with a strong enforcement emphasis, has allowed the agency to successfully oversee the dynamic and flourishing US futures and options markets. In the energy sector alone, during the last five years, the Commission filed 39 enforcement actions, charging 64 companies and individuals with manipulation, attempted manipulation and/or false reporting. At the same time, the agency prosecuted more than 50 hedge funds and commodity pool operators for various violations, and filed actions against more than 360 individuals and companies for off-exchange foreign currency fraud and misconduct. During the last year, staff also conducted nearly 30 market move reviews to monitor the potential for, and instances of, market volatility, market disruptions, or emergencies that have the potential to impact the markets.
The CFTC FY 2007 Performance and Accountability Report can be found on the Internet at: www.cftc.gov/stellent/groups/public/@aboutcftc/documents/file/2007performacctreport.pdf.
R. David Gary
Last Updated: December 17, 2007