The focus of Goal One is the marketplace. If U.S. commodity futures and option markets are protected from, and are free of, abusive practices and influences, they will fulfill their vital role in the U.S. market economy, accurately reflecting the forces of supply and demand and serving market users by fulfilling an economic need.
STRATEGIC GOAL ONE Ensure the economic vitality |
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FY 2010 Investment | FY 2010 Performance Results | ||||||
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FY 2010 Actual |
Change (+/-) from FY 2009 |
Targets: | Exceeded | Met | Not Met | Results Not Demonstrated |
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Cost: | $53.3 Million | +$8.2 Million | Results: | 3 | 3 | 4 | 0 |
Staffing: | 196 FTE | +40 FTE | Total Number of Results: 10 |
The table below provides a summary of selected performance measures to demonstrate the Commission’s performance towards ensuring the economic vitality of the commodity futures and option markets. For a detailed analysis of all performance measures, please refer to the Performance Section of the PAR located at http://www.cftc.gov/About/CFTCReports/.
Outcome Objective 1.1 Markets that accurately reflect the forces of supply and demand for the underlying commodity and are free of disruptive activity. | |||||||||||||||||||||||
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Performance Measures | FY 2010 Target |
FY 2010 Actual |
FY 2010 Met or Not Met |
Performance Trends FY 2006 – FY 2010 |
Comment | ||||||||||||||||||
1.1.1 Percentage growth in market volume. | 28% | 15.7% | Not Met |
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The percentage growth in the market increased at a rate of 15.7% for FY 2010. However, excluding the first quarter of FY 2010, volume increased at just over 20%. October 2009 was almost 17% down from October 2008. | ||||||||||||||||||
1.1.2 Percentage of novel or innovative market proposals or requests for CFTC action addressed within six months to accommodate new approaches to, or the expansion in, derivatives trading, enhance the price discovery process, or increase available risk management tools. | 75% | 100% | Met |
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DMO handled a number of formal and informal proposals or requests for Commission action during this fiscal year. The items, which included innovative products and exchange processes, were all addressed within six months of formal receipt. | ||||||||||||||||||
1.1.3 Percentage increase in number of products traded. | 10% | 25.6% | Met |
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The number of products traded grew by 25.6% due to the growth in number of new products offered on the exchanges during FY 2010, and the recovery from the economic downturn of 2008. | ||||||||||||||||||
1.1.5 Percentage of new contract certification reviews completed within three months to identify and correct deficiencies in contract terms that make contracts susceptible to manipulation. | 70% | 37% | Not Met |
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Coupled with an increasing backlog of new product certifications, and added responsibilities resulting from the Farm Bill to review contracts traded on ECMs to determine whether each contract performs a significant price discovery function, the percentage of completed reviews declined in FY 2010 and, thus, the percentage was significantly lower than anticipated. | ||||||||||||||||||
1.1.6 Percentage of rule certification reviews completed within three months, to identify and correct deficiencies in exchange rules that make contracts susceptible to manipulation or trading abuses or result in violations of law. | 75% | 29% | Not Met |
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The percentage of trading rule amendment certification reviews completed within three months of receipt by the Commission decreased over last year. This decrease in performance is due to the fact that DMO did not have sufficient staff to keep up with the influx of submissions and added responsibilities resulting from the Farm Bill and the rulemakings mandated by the Dodd-Frank Act. |