Strategic Goal Three–Ensuring Market Integrity in Order to Foster Open, Competitive, and Financially Sound Markets

The Commission also focuses on issues of market integrity, which seeks to protect: the economic integrity of the markets so that they may operate free from manipulation; the financial integrity of the markets so that the insolvency of a single participant does not become a systemic problem affecting other market participants; and the operational integrity of the markets so that transactions are executed fairly and that proper disclosures are made to existing and prospective customers.

In FY 2011, the Commission requests $52.6 million to fund its efforts to reach the following outcomes of Strategic Goal Three:

Clearing organizations and firms holding customer funds have sound financial practices—with FY 2011 performance goals of zero loss of customer funds as a result of firms’ failure to adhere to regulations and zero customers prevented from transferring funds from failing firms to sound firms.
Commodity futures and option markets are effectively self-regulated—with an FY 2011 performance goal of zero loss of funds resulting from failure of self-regulatory organizations (SROs) to ensure compliance with their rules.
Markets are free of trade practice abuses.
Regulatory environment is flexible and responsive to evolving market conditions.

Breakout of Goal Three Request by Outcome

Breakout of Goal Three Request by Outcome Objective
*($ in thousands)*
Goal Three Outcomes	FY 2010		FY 2011		Change
Goal Three Outcomes	Budget Request	FTE	Budget Request	FTE	Budget Request	FTE
3.1 Clearing organizations and firms holding customer funds have sound financial practices.	$12,824	49	$15,609	54	$2,785	5
3.2 Commodity futures and option markets are effectively self-regulated.	16,097	64	19,905	69	3,808	5
3.3 Markets are free of trade practice abuses.	5,162	20	6,223	21	1,061	1
3.4 Regulatory environment responsive to evolving market conditions.	8,885	33	10,908	37	2,023	4
Total Goal Three	$42,968	166	$52,645	181	$9,677	15

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Last Updated: March 19, 2010