20 March 2018
visit www.nextgenbanking.co.uk

O'Malia slams CFTC over tech investment

06 March 2014  |  3503 views  |  0 Washington Capitol hill

Commodity Futures Trading Commission commissioner Scott O'Malia has slammed his own organisation for spending money on people, rather than technology.

Earlier this week President Obama proposed a budget of $280 million for the CFTC in 2015, less than the $315 million he asked for in fiscal 2014 (although more than the $215 million that was eventually granted).

Democrat CFTC commissioner Bart Chilton called the proposal "woefully insufficient" at time when the watchdog is taking on oversight of a large swath of the swaps market.

Chilton says that the CFTC desperately needs to hire more people, insisting that "our staff is on its knees".

The body's technology people may not being able to support implementing the regular collection of key data in the marketplace says the commissioner, adding: "I am fearful to say where, so as not to tip off market participants, but our coverage will not be as robust or comprehensive as is required."

Chilton's fellow commissioner, Republican Scott O'Malia has now waded into the debate, deriding the CFTC's "futile strategy of hiring more staff to oversee a vastly complex, high-speed and technology-driven market".

O'Malia says that the CFTC consistently makes poor use of its funds, increasing data and technology spending by just 6.8% between 2011 and 2014, compared to an overall budget rise of 11.7% during the same period.

The commissioner argues that the $50 million for non full-time-equivalent technology investments is unacceptable. And worse, of this $50 million only $10.5 million is for "cutting edge tools that are essential to the Commission's long-term regulatory mission".

He says that the current funding plan will now see another year wasted without the deployment of critical technology, such as an order message data collection and analysis system.

He wants the CFTC to focus on three key areas of technology-related investment: improving swaps data quality, developing additional automated surveillance tools, and developing automated risk analytics.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CFTC computers crashing under weight of new swaps data

CFTC computers crashing under weight of new swaps data

20 March 2013  |  11235 views  |  1 comments | 6 tweets | 11 linkedin
CFTC creates HFT subcommittee

CFTC creates HFT subcommittee

10 February 2012  |  6349 views  |  0 comments
CFTC and SEC to increase budgets through user fees

CFTC and SEC to increase budgets through user fees

15 February 2011  |  8665 views  |  0 comments
SEC and CFTC propose joint IT task force

SEC and CFTC propose joint IT task force

20 October 2009  |  7242 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comVisit http://info.nice.comwww.currencycloud.com

Top topics

Most viewed Most shared
Can banks be a threat to Big Tech?Can banks be a threat to Big Tech?
9942 views comments | 29 tweets | 39 linkedin
hands typing furiouslyBitcoin at 50,000 USD?
9883 views 0 | 5 tweets | 3 linkedin
Indian fintech sector needs regulatory support to flourishIndian fintech sector needs regulatory sup...
9245 views comments | 10 tweets | 8 linkedin
Barclays partners seven watch brands for contactless timepiecesBarclays partners seven watch brands for c...
8475 views comments | 14 tweets | 26 linkedin
Barclays propels Coinbase into Faster PaymentsBarclays propels Coinbase into Faster Paym...
7700 views comments | 15 tweets | 29 linkedin

Featured job

Singapore (or Hong Kong)

Find your next job