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Objective 2.2

Registered intermediaries meet standards for fitness and conduct.

Pursuant to the CEA and Commission regulations, all intermediaries registered with the Commission are mandated to satisfy certain standards regarding fitness and conduct to ensure the protection of market participants and the financial soundness of the market. The Dodd-Frank Act will increase the number of entities required to register, including swap dealers, thus increasing the portion of the Commission’s resources required to execute this function.

Under the Dodd-Frank Act, entities operating as and meeting the definition of a swap dealer or major swap participant will be required to register and to comply with applicable requirements regarding business conduct, reporting and record-keeping, and capital and margin. These entities will be subject to review by the Commission or a self-regulatory organization (SRO) with respect to their compliance with the applicable requirements.

Performance Measure 2.2.1.1 Conduct direct examinations of swap dealers and major swap participants identify deficiencies, and confirm that all deficiencies identified are corrected within specified period of time.

FY 2011	100%
FY 2012	100%
FY 2013	100%
FY 2014	100%
FY 2015	100%

Registered futures associations (RFAs), which are also SROs, must adopt and enforce comprehensive membership programs to implement the CEA and the Commission’s regulations. Further, RFAs, to the extent that the Commission has delegated certain responsibilities to them, must ensure the full implementation of such delegated authorities. Pursuant to the CEA, changes and additions to the RFA’s rules must be submitted to the Commission.

Performance Measure 2.2.2.1 Under a risk-based approach, conduct reviews of selected programs of all RFAs to assess fulfillment of statutory and delegated responsibilities and confirm that any deficiencies identified are corrected within the specified period of time. Percent of deficiencies corrected within specified time period.

FY 2011	90%
FY 2012	92%
FY 2013	94%
FY 2014	96%
FY 2015	98%

Performance Measure 2.2.2.2 Percentage of RFA rules submitted for which determinations
are made within statutory time frames.

FY 2011	90%
FY 2012	92%
FY 2013	94%
FY 2014	96%
FY 2015	98%

The Commission oversees the activities of registrants other than FCMs and RFEDs with respect to their compliance with the CEA and Commission regulations. Commission staff conduct examinations of the firms that present the most concern, within available resources.

Performance Measure 2.2.3.1 On a risk-based basis, conduct direct examinations of non-FCM intermediaries, identify deficiencies, and confirm that any deficiencies identified are corrected within the specified period of time. Percent of time that deficiencies are corrected within specified time period.

FY 2011	90%
FY 2012	92%
FY 2013	94%
FY 2014	96%
FY 2015	98%

 

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