Agency Direction

Agency Direction Budget and FTEs

	Budget	FTEs
Total Budget	$13,846,000	47
Total Change	$4,591,000	12

Agency Direction Percentage
of Total Budget Dollars

Program Activity	Percentage
Agency Direction	6%
All Other Programs	94%

Agency Direction Percentage
of Total Budget FTEs

Program Activity	Percentage
Agency Direction	6%
All Other Programs	94%

Justification of the FY 2011 President’s Budget & Performance Plan

The Office of the Chairman and the Commissioners provide executive direction and leadership to the Commission—specifically as it develops and adopts agency policy that implements and enforces the CEA and amendments to that Act including the CFMA. This policy is designed to foster the financial integrity and economic utility of commodity futures and option markets for hedging and price discovery, to conduct market and financial surveillance, and to protect the public and market participants against manipulation, fraud, and other abuses. Executive leadership, in this regard, is the responsibility of the Chairman and Commissioners and includes the offices of the Chairman: the Office of External Affairs; the Secretariat; the Office of Inspector General; and the Office of Equal Employment Opportunity.

The Commission continues to implement the CRA, (part of the 2008 Farm Bill), making critical improvements to the CEA and the Commission’s authority. Specifically, the new legislation reauthorized the Commission through FY 2013, provided enhanced Commission oversight of ECMs that trade contracts performing a significant price discovery function, increased CFTC penalty authority for manipulation, clarified CFTC anti-fraud authority for off-exchange principal-to-principal energy trades, and clarified CFTC off-exchange retail foreign currency fraud authority.

The Commission has undertaken a number of high priority programmatic initiative beginning in FY 2009 with resource implications for FY 2010 and FY 2011, these include: 1) reviewing regulation of derivatives markets and recommending changes to protect the U.S. public from systemic financial risks and improve regulatory coordination with other agencies such as the SEC and FERC; 2) increasing market transparency through initiatives such as, enhancing the Commitment of Traders (COT) Reporting; publishing quarterly and eventually monthly reports on commodity index trading; rapid expansion of mission critical information systems that can integrate large trader data with intraday trades and account ownership data to improve CFTC oversight of trading and better deter fraud and manipulation, and; implementing improvements to the Commission’s Web site— CFTC.gov; 3) improving regulation of energy markets – especially with regard to position limits and SPDCs 4) increasing the frequency of reviews and audits of Commission registrants, and; 5) improving resource utilization through technology modernization, improved resource justification and improve program performance.

In FY 2010, the Agency Direction program requests a total of 47 FTEs, an increase of 12 over the estimated FY 2010 usage. Three additional staff are allocated to the Immediate Office of the Chairman: two senior counselors and one administrative assistant to assist the Chairman in implementing the financial regulatory reform (including regulation of the derivatives markets and SEC harmonization); improving market transparency (enhanced reporting on market data; integration of large trader data with intraday trades and account ownership; enhanced access to information through an improved CFTC Web site); and better use of current regulatory and statutory authorities (particularly with regard to energy markets and registrant oversight); and, better use of human and technological resources (with focus of technology modernizations, better resource justification and improve program performance and outcomes).

One additional information technologist (Web site content manager) is required to ensure the Commission has a robust Web site that is useful to market participants, the industry we regulate, and the public. Five additional staff-years are requested to provide each of the four Commissioners with a staff of three (professional and administrative) to assist in the adequate review and analysis of the increasing number of complex issues presented to the Commission for review and action.

Three new risk management analysts are requested to establish a new enterprise risk management staff. The risk management staff will focus on developing and employing methods and processes to manage risks related to the achievement the Commission goals. Specifically, identifying particular events or circumstances they may affect the integrity of Nation’s futures markets, and assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress. In short, the object is to proactively address risks and opportunities and thereby protect the integrity of the futures markets, market participants, consumers, the public, and the Nations’ financial stability.

Consequence of Not Receiving Requested Level of Resources

Without the requested level of resources, the Offices of the Chairman and the Commissioners will not be adequately staffed to respond appropriately and timely to the many new expectations, requirements, requests, and new responsibilities thrust upon the agency in the wake of the financial crisis of 2008. For example, public outreach, and responsiveness to Congress and other government agencies, the futures industry, and public inquiries would be unacceptably slowed. Likewise, the administrative and technical review of Administration proposals, proposed legislation from Congress, Commission memoranda, correspondence from stakeholders, or official actions may take longer. These delays will certainly impede the Commission goals of ensuring the economic vitality of the markets, ensuring that market users and public are protected, and fostering open, competitive and financial sound markets. Specially, the additional resources requested are critical to ensuring there are no avoidable delays in advancing Administrative and Congressional initiatives aimed at restoring the economy and ensuring a sustained recovery of the Nation’s economy.

Agency Direction Request by Subprogram
($ in thousands)

Subprogram	FY 2010		FY 2011		Change
	Budget Request	FTE	Budget Request	FTE	Budget Request	FTE
Agency Direction1	$9,255	35.00	$13,846	47.00	$4,591	12.00
Total	$9,255	35.00	$13,846	47.00	$4,591	12.00

Agency Direction Request by Goal
($ in thousands)

Outcomes	FY 2010		FY 2011		Change
	Budget Request	FTE	Budget Request	FTE	Budget Request	FTE
GOAL ONE: Protect the economic functions of the commodity futures and option markets.
None
GOAL TWO: Protect market users and the public.
None
GOAL THREE: Foster open, competitive, and financially sound markets.
None
GOAL FOUR: Organizational and Management Excellence.
4.1 A productive, technically competent, competitively compensated, and diverse workforce that takes into account current and future technical and professional needs of the Commission.	$0	0.00	$0	0.00	$0	0.00
4.2 A modern and secure information system that reflect the strategic priorities of the Commission.	0	0.00	0	0.00	0	0.00
4.3 An organizational infrastructure that efficiently and effectively responds to and anticipates both the routine and emergency business needs of the Commission.	0	0.00	0	0.00	0	0.00
4.4 Financial resources are allocated, managed and accounted for in accordance with the strategic priorities of the Commission.	0	0.00	0	0.00	0	0.00
4.5 The Commission’s mission is fulfilled and goals are achieved through sound management and organizational excellence provided by executive leadership.	9,255	35.00	13,846	47.00	4,591	12.00
Subtotal Goal Four	$9,255	35.00	$13,846	47.00	4,591	12.00
Total	$9,255	35.00	$13,846	47.00	$4,591	12.00

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Last Updated: March 19, 2010