Appendix 2 – Analysis of New Responsibilities and Authorities on 2013 Budgetary Requirements (continued)

Analysis of Designated Contract Markets

In FY 2013, the Commission will enforce rules and requirements that standardized OTC derivatives contracts be executed on regulated trading platforms. The new requirements are intended to facilitate a transparent, liquid, and competitive marketplace with trades occurring on regulated exchanges.

In implementing the new requirements, the CFTC will be required to:

collect, assemble, analyze and report data;
expand the Commission’s position limit-setting authority beyond futures contracts to swaps that perform a significant price discovery function;
examination of exchanges for compliance with new and modified core principles;
establishment and execution of cross-exchange aggregate position limits; and
a new contract and rule review process.

The Commission projects it will regulate 21 DCMs in FY 2013.

Projected Designated Contract Markets (DCMs)
Board of Trade of the City of Chicago, Inc. Cantor Futures Exchange, L.P. CBOE Futures Exchange, LLC Chicago Climate Futures Exchange, LLC Chicago Mercantile Exchange, Inc. Commodity Exchange, Inc. ELX Futures, L.P. Green Exchange, LLC ICE Futures US, Inc. (was NYBOT) Kansas City Board of Trade Minneapolis Grain Exchange, Inc. NASDAQ OMX Futures Exchange, Inc. (was PBOT) New York Mercantile Exchange, Inc. North American Derivatives Exchange, Inc. (was HedgeStreet, Inc.) NYSE Liffe US, LLC OneChicago LLC Futures Exchange The Trend Exchange, Inc. [Eris Exchange, LLC – currently has DCM application pending]

Inventory and Status of New Rules Impacting Projected Registrants
Rules Under Development	Status
Agricultural Swaps (ANPR)	Still Under Commission Consideration
Governance & Possible Limits - Section 726	Still Under Commission Consideration
Agricultural Commodity Definitions	(OGC)
Position reports for physical commodity swaps	Still under Commission consideration
Anti-Manipulation	(ENF)
Disruptive Trading Practices (ANPR)	(ENF)
Rule Certification	Completed
Swap Data Recordkeeping and Reporting	Completed
Real Time Reporting	Still under Commission consideration
DCM Core Principles and other requirements	Still under Commission consideration
Position Limits for Exempt and Agricultural Commodities	Still under Commission consideration
Disruptive Trading Practices Interp. Order	(ENF)
Conforming Rules – Revising Part 1	Comment period still open
Product Definitions (Joint with SEC)	(OGC)
Testing and Supervision (DRT and algorithms)	(ENF)
Governance & Possible Limits – Core Principles Implementation – Final Rule	Still under Commission consideration

Technology for DCMs
IT Category	IT Requirement¹
New Mission Authorities	Swaps Position & Transaction Standards/Data Loading
	Swaps Position & Transaction Surveillance
	Position Limit Monitoring
	CFTC.gov Online Participant Portal
	Electronic Forms (102, 40, etc.)
	Dodd-Frank Participant Registration (SEF, SDR, etc.)
	Enterprise Case Management (Market Surveillance & Enforcement)
	Order Message Standards and Loading
Current Mission Authorities	Large Trader Reporting, Trade Practice Compliance, Filings & Actions
	New Alerts and Alerts Using Intraday Data
	Data Standardization, Data Loading, Data Analysis - e.g., Order Data, Large Trader, Time & Sales
	Automate Secure File Transfer Sign-Up
	Reporting Usability Enhancements
	Swaps Transparency Reporting
¹ The listing of technology requirements is not limited to registrants but support other activities Commission-wide. (back to text)

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