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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 2010, the Commission requests $38.0 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 2010 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 2010 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

Table 11: Breakout of Goal Three Request by Outcome Objective
($ in thousands)

Goal Three Outcomes	FY 2009		FY 2010		Change
	Budget Request	FTE	Budget Request	FTE	Budget Request	FTE
3.1 Clearing organizations and firms holding customer funds have sound financial practices.	$9,607	37	$10,490	39	$883	2
3.2 Commodity futures and option markets are effectively self-regulated.	12,772	51	14,508	56	1,736	5
3.3 Markets are free of trade practice abuses.	5,499	21	5,904	22	405	1
3.4 Regulatory environment responsive to evolving market conditions.	6,462	25	7,138	27	676	2
Total Goal Three	$34,340	134	$38,040	144	$3,700	10

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