Table Of Contents

Proceedings Budget and FTEs

	Budget	FTEs
Total Budget	$2,723,000	11
Total Change	$75,000	0

Figure 32: Proceedings Percentage
of Total Budget Dollars

Program Activity	Percentage
Proceedings	2%
All Other Programs	98%

Figure 33: Proceedings Percentage
of Total Budget FTEs

Program Activity	Percentage
Proceedings	2%
All Other Programs	98%

Justification of the FY 2010 President’s Budget & Performance Plan

The Office of Proceedings is responsible for providing an inexpensive, impartial, and expeditious forum for handling customer complaints against persons or firms registered under the CEA. In FY 2010, the Office of Proceedings program requests 11 FTEs, the same number of FTEs as the FY 2009 level.

The Complaints section of the Office of Proceedings receives and prepares customer claims for action by appropriate officials, dismissing those that are outside the jurisdiction of the Commission or are pending in another forum. The Hearings section includes judgment officers (JOs), who decide reparations complaints in voluntary and summary proceedings and administrative law judges (ALJs), who conduct formal proceedings.

The ALJs also decide administrative enforcement cases brought by the Commission against persons or firms responsible for violating the CEA or Commission regulations.

The Office of Proceedings receives between 50 and 60 cases per year and will respond to 5,000 telephone inquiries and requests. Inquiries from members of the public include questions from those considering investing in commodity futures and options, and questions about specific firms and whether or not they have had customer complaints filed against them. Information is also provided about how to utilize the CFTC complaints process.

The Office of Proceedings maintains a case-tracking system that tracks the progress of each case from receipt of complaint through disposition, including any appeal to the Commission or Federal court. The case-tracking system not only assists with case management within the Commission, but it also enables the Office of Proceedings to provide current information on the status of cases in response to public inquiries.

The Office of Proceedings maintains the Reparations Sanctions in Effect List publication, a record of individuals and firms that have not paid reparations awards. This document is published as needed. The office also maintains the Administrative Sanctions in Effect List publication, a record of individuals and firms that have outstanding against them enforcement sanctions, such as trading prohibitions. This document is also published as needed. These lists are made available to the public on the Commission’s Web site and are distributed to the exchanges via e-mail, the NFA, the Futures Industry Association, the National Association of Securities Dealers, and the SEC for use in their compliance efforts.

Consequence of Not Receiving Requested Level of Resources

The Office of Proceedings requests no increase of FTEs over the FY 2009 level of 11. If the requested level of eleven FTEs is not approved, the Office of Proceedings will be unable to move forward in effectively supporting the Commission’s customer protection program. In particular, the Office will not be able to effectively coordinate with the other customer protection programs of the Commission and NFA, or to represent the Commission in working on customer protection issues with external groups, including other Federal financial regulators and organizations such as AARP. In addition, the Office will not be able to address serious paper record-keeping issues or plan for and implement electronic filing and record-keeping. The Office will also have difficulty in the transition to eLaw, the electronic litigation support package that currently supports the Division of Enforcement. This will, in turn, minimize the long-range ability of the program to effectively serve the Commission and the public. Finally, if the requested level of eleven FTEs is not approved, the ability of the Office to provide more and better information to the public through the agency’s Web site and through other public information forums could be impacted.

Table 32: Proceedings Request by Subprogram
($ in thousands)

Subprogram	FY 2009		FY 2010		Change
	Budget Request	FTE	Budget Request	FTE	Budget Request	FTE
Enforcement	$963	4.00	$990	4.00	$27	0.00
Reparations	1,685	7.00	1,733	7.00	48	0.00
Total	$2,648	11.00	$2,723	11.00	$75	0.00

Figure 34: Proceedings FY 2010 Budget by Subprogram

Subprogram	Percentage
Enforcement	36%
Reparations	64%

Table 33: Proceedings Request by Goal
($ in thousands)

Outcomes	FY 2009		FY 2010		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.
2.1 Violations of Federal commodities laws are detected and prevented.	$963	4.00	$990	4.00	$27	0.00
2.2 Commodities professionals meet high standards.	0	0.00	0	0.00	0	0.00
2.3 Customer complaints against persons or firms falling within the jurisdiction of the Commodity Exchange Act are handled effectively and expeditiously.	1,685	7.00	1,733	7.00	48	0.00
Subtotal Goal Two	$2,648	11.00	$2,723	11.00	$75	0.00
GOAL THREE: Foster open, competitive, and financially sound markets.
None.
Total	$2,648	11.00	$2,723	11.00	$75	0.00

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