US President Barack Obama set out his 2012 budget proposal
on February 14, awarding substantial increases in annual
funding to the Commodity Futures Trading Commission and the
Securities and Exchange Commission.
However, with a political battle brewing over the
US’s huge budget deficit, Obama proposed that
participants in futures markets be charged fees to supplement
the CFTC’s federally supplied budget.
The idea has already been attacked by futures industry
leaders such as Terry Duffy, executive chairman of CME Group,
who complained that it would give foreign exchanges an unfair
The administration plans to award the CFTC $308m for 2012,
an 82% increase from its 2010 budget and 43% more than the
$216m it was awarded for 2011.
Gary Gensler, chairman of the CFTC, told a Congressional
hearing that unless the agency was awarded more money, it would
not be able to carry out its enlarged duties under the
Dodd-Frank Act. With present funding levels, it would have a
smaller staff than before the Act was passed, making it
responsible for regulating the OTC market as well as listed
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