The Office of the Executive Director (OED) provides management services which support the programs of the Commission. OED includes the offices of Information Resources Management, Financial Management, Human Resources and Support Services, and the Commission Library. The Commission's Office of Proceedings is also under the administrative direction of the Executive Director. Through these offices, OED provides strategic planning, personnel management, staffing, training, accounting, budgeting, contracting, procurement, end-user computing, systems development, and facilities and equipment management. OED staff:
� formulate budget strategies,
� manage the allocation and utilization of agency resources,
� impose management controls and ensure financial integrity,
� develop and implement the agency's automated information systems,
� provide information and research services, and
� ensure agency-wide compliance with Federal requirements enacted by Congress and imposed by the Office of Management and Budget, the Department of the Treasury, the General Accounting Office, the General Services Administration, and the Office of Personnel Management.
In FY 1998, OED opened a fitness center in its headquarters office. For this initiative and its health and fitness services programs, the Commission received the Office of Personnel Management Director's Award for Outstanding Health Services.
OED developed and the Commission adopted a new Sexual Harassment policy for the agency. Staff also initiated a sexual harassment awareness training program which will take place during FY 1999. OED established a committee to develop strategies to attract larger numbers of minority law graduates to the Commission and to create a Summer Honors Program for second-year law students. OED completed a comprehensive management study of the Office of Proceedings and made recommendations to the Chairperson for improvements in policies and operations. In addition, OED staff prepared the agency's annual report to Congress.
During FY 1998, the Office spearheaded two community service programs through which agency volunteers can work with students in a D.C. public elementary school or donate school supplies to needy, inner-city children. The agency also donated 312 PCs to public schools in Washington, D.C., Chicago, New York, Los Angeles and Kansas City.
Office of Information Resources Management
The Office of Information Resources Management (OIRM) provides essential automation services to the Commission. OIRM staff:
� develop and maintain systems to support Commission activities in end-user computing and network services,
� provide Internet access and support,
� maintain the Commission's website,
� support the work of the Commission's operating divisions by reviewing automated trading and clearing systems used by the regulated futures industry, and
� ensure information security and integrity.
In FY 1998, OIRM upgraded the Commission's desktop software suite and trained all employees on its new features. The new suite includes Windows 95 as the desktop operating system; Office 97 for word-processing, spreadsheet and data management; and Outlook 97 for electronic mail. OIRM also completely redesigned the Commission's website to provide easier access to Commission news and information. The major website enhancements include a search engine allowing full text searches throughout the site; a comprehensive site map; an updated and expanded links page; and an "Ask CFTC" page which provides answers to commonly asked questions and includes contact information on key CFTC programs and personnel. In addition, OIRM developed a new capability that allows Commissioners and key staff to access their e-mail and files stored on the network, to connect with the Internet, and to execute most of the applications on their office desktop computers from remote locations.
OIRM continued to work with the Division of Economic Analysis to develop a new Integrated Market Surveillance System which will allow the Commission to obtain large trader option position data on a daily basis. Currently, the exchanges report option position data on a weekly basis. Under the new system, futures commission merchants (FCMs) will report daily to the CFTC on the option positions of large traders. Future development will allow the exchanges to receive futures and option large trader data directly from the Commission.
Working with the Division of Trading and Markets, OIRM planned the redesign of the Commission's Exchange Database System (EDS). The new EDS will provide Commission employees with tools of increased sophistication to aid futures trading investigators in discerning patterns of trading that suggest potential violations, particularly violations that may be facilitated by the increased use of electronic trading systems.
OIRM continued efforts to ensure that Commission software, hardware and systems will comply with Year 2000 requirements. OIRM staff worked with the managers of buildings leased by the Commission to ensure that the elevators and electrical, heating, ventilation, air
conditioning, and other building systems are Year 2000 compliant. In addition, OIRM supported the Division of Trading and Markets' oversight of Year 2000 compliance efforts in commodity industry trading and clearing systems.
In FY 1998, the Executive Director and OIRM managers instituted regular, evaluative sessions with internal systems users to ensure that systems development projects are meeting the needs of system users. These meetings have ensured that the developers and users of each system are operating under the same sets of assumptions and have the same priorities and that issues are addressed in a timely manner.
Office of Financial Management
The Office of Financial Management (OFM) manages the Commission's financial and budget programs. OFM staff members:
� coordinate development of the Commission's strategic plan,
� formulate and execute the Commission's budget,
� provide contracting and purchasing services,
� ensure proper use of, and accounting for, agency resources, and
� manage the Commission's travel services.
In FY 1998, OFM prepared the Commission's FY 2000 Budget Request and Annual Performance Plan (APP) as required by the Government Performance Results Act. The APP explains how the Commission will execute the goals and objectives of its strategic plan during FY 2000. OFM continues to work with the Commission to develop methods to track the agency's progress in meeting the goals established in the FY 1999 and FY 2000 performance plans. During FY 1998, OFM also closed accounting for FY 1997, developed and implemented the FY 1998 operating budget, and prepared the FY 1999 budget. In all budget matters, OFM staff members assist the Chairperson in presenting the Commission's budget justifications to OMB and Congress and in answering budget-related questions from Commission staff and the public.
During FY 1998, OFM worked with OIRM staff to analyze client server-based financial management systems to replace the Commission's current mainframe system. The new system will comply with Year 2000 and the electronic funds provisions of the Debt Collection Improvement Act. OFM also worked with OIRM to develop proposals for other modifications to the financial management system, including electronic interfaces between the system and various external systems. Staff also began work on an upgrade to the Commission's travel management system and implemented new software applications to improve financial accounting.
In FY 1998, OFM assumed responsibility for all Commission procurement, contracting, and lease administration.
Office of Human Resources and Support Services
The Office of Human Resources and Support Services (OHRSS) manages the Commission's personnel and administrative support services functions. OHRSS staff members:
� provide recruitment and staffing services,
� manage the agency's diversity programs,
� advise on issues of employee and labor relations,
� offer employee development and training services,
� develop and implement the agency's performance management,
� administer the Commission's employee benefits and payroll functions, and
� provide support services for copying, mail, telephone and copier maintenance, physical inventory and facilities management.
In FY 1998, OHRSS offered training to managers on performance management, coaching and counseling, and conflict resolution. OHRSS also provided training to Commission employees on mid-career adjustments to employee retirement programs and the implications of conversion from the Civil Service Retirement System to the Federal Employees Retirement System. At the request of the Commission's Federal Women's Program, OHRSS provided a "Write Thinking" course to enhance the writing, thinking and organizational skills of Commission employees.
OHRSS was instrumental in acquiring and supervising the construction of office space in the Commission's headquarters office. Staff also instituted periodic on-site visits by a health services nurse and coordinated the Commission's Annual Health Fair. OHRSS also worked with the Chairperson to recruit nominees for annual Commission-wide awards, coordinate a committee to select award recipients and plan the Annual Awards Ceremony.
In managing the agency's personnel and payroll functions, OHRSS conducted the second biennial review of CFTC timekeeping records and practices. In addition, OHRSS staff members served on a team coordinating inter-agency development of new capabilities for the Employee Express system, a program which allows employees to access and change personal employee records by telephone.
Commission Library
The Commission Library provides hard copy and on-line materials to assist employees with legal and economic research relating to the futures industry and its regulation. Library staff members:
� procure and maintain periodical and book collections,
� provide legal and economic research services,
� acquire needed information for employees through an inter-library loan program, and
� provide training on use of automated research tools.
In FY 1998, the Library worked with OIRM to upgrade the Commission's Automated Library System to ensure Year 2000 compliance. Staff members provided assistance in retrieving information from the new, on-line Westlaw system and provided training on the use of LEXIS, Matthew Bender publications and the Library catalog.
The Library also worked with OIRM to develop specifications for a new, Windows-based Integrated Library System and developed an initiative to include new library items received in the regions in the Commission's automated library system. Library staff planned training for regional office staff on the retrieval of electronic information.
Office of Proceedings
The Office of Proceedings provides an inexpensive, impartial and expeditious forum for handling customer complaints against persons or firms registered under the Commodity Exchange Act (CEA). Through the Office's reparations program, customers may institute proceedings against professionals currently or formerly registered with the Commission if the individuals or firms allegedly violated the antifraud or other provisions of the CEA. Reparations cases are decided by Administrative Law Judges or Judgment Officers. Administrative Law Judges also decide administrative enforcement cases brought by the Commission against persons or firms who have allegedly violated the CEA or Commission rules and regulations. Staff members of the Office of Proceedings:
� receive and process customer claims,
� prepare claims and forward them for hearing,
� provide information about the complaint process,
� provide information about the number of complaints filed against persons or firms and the outcome of those complaints,
� maintain all reparations and administrative enforcement case dockets, including cases on appeal to the Commission and Federal courts, and
� issue decisions and orders in reparations and administrative enforcement cases.
The Office handles three types of proceedings: Voluntary, Summary and Formal. Voluntary Proceedings, which require a $50 filing fee, are the quickest reparations proceedings because they do not involve hearings or appeals. Judgment Officers decide Voluntary cases solely on the basis of the written submissions and exhibits provided by the parties. Summary Proceedings, which require a $125 filing fee, resolve claims of $30,000 or less. A Judgment Officer conducts oral hearings by conference telephone call if a hearing is necessary. With a filing fee of $250, Formal Proceedings resolve claims of over $30,000 and involve an in-person hearing held before an Administrative Law Judge at a convenient location. Both Summary and Formal Proceedings result in appealable Initial Decisions that include factual findings and legal conclusions. The losing party in Summary and Formal Proceedings may appeal Initial Decisions first to the full Commission and then to a U.S. Circuit Court of Appeals.
The Office of Proceedings maintains a current Administrative Sanctions in Effect List and Reparations Sanctions in Effect List. The Administrative Sanctions in Effect List contains the names of firms and individuals who currently have registration and trading sanctions in effect as a result of administrative and statutory disqualification proceedings. The Reparations Sanctions in Effect List contains the names of individuals or firms that have not paid awards levied against them as a result of reparations proceedings. The Office makes the lists available to the public, the commodity exchanges, the National Futures Association (NFA), the National Association of Securities Dealers and the Securities and Exchange Commission.
In FY 1998, the Office of Proceedings responded to approximately 15,000 telephone inquiries, received 218 complaints and forwarded 197 complaints for hearing. The number of cases filed represents an increase of 40% over the number filed in FY 1997. The Administrative Law Judges (ALJs) issued decisions in 20 administrative enforcement proceedings, and the ALJs and Judgment Officers closed a total of 191 reparations cases.
The Office of Proceedings worked with the NFA to help redesign the NFA Clearinghouse of information on commodity firms and individuals. In January 1999, NFA plans to make the Clearinghouse information available via the Internet. In July 1999, NFA will enhance the Clearinghouse to include additional information on reparations cases and will implement an improved means of accepting disciplinary information from the CFTC and the exchanges.
To improve internal operations, the Office began working with OIRM to review the tasks it currently performs manually and to determine which tasks can be automated in the upcoming fiscal year.
The following statistics reflect the status of reparations complaints and administrative enforcement cases at the end of Fiscal Year 1997:
| Reparation Complaints |
FY 1997 |
FY 1998 |
| Complaints pending beginning of fiscal year |
39 |
48 |
| Complaints filed or reinstated |
155 |
218 |
| Complaints dismissed or settled |
29 |
37 |
| Complaints forwarded for all types of proceedings |
117 |
197 |
| Complaints pending end of fiscal year |
48 |
32 |
| Enforcement Cases |
FY 1997 |
FY 1998 |
| Cases pending beginning of fiscal year |
21 |
22 |
| Cases received for adjudication |
23 |
26 |
| Cases settled |
6 |
3 |
| Decisions issued |
16 |
20 |
| Cases pending end of fiscal year |
22 |
25 |
| Reparations Cases |
FY 1997 |
FY 1998 |
| Cases pending beginning of fiscal year |
93 |
90 |
| Cases received for all types of proceedings(a) |
128 |
207 |
| Cases dismissed for cause |
8 |
17 |
| Cases settled |
64 |
88 |
| Cases disposed of by default |
9 |
29 |
| Cases disposed of by initial decision |
50 |
57 |
| Total cases closed |
131 |
191 |
| Cases pending end of fiscal year |
90 |
106 |
(a) Includes cases forwarded for adjudication, severed cases, remands and motions for reconsideration.