24 June 2017
Visit cib.db.com

O'Malia slams CFTC over tech investment

06 March 2014  |  3224 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  |  10988 views  |  1 comments | 6 tweets | 11 linkedin
CFTC creates HFT subcommittee

CFTC creates HFT subcommittee

10 February 2012  |  6158 views  |  0 comments
CFTC and SEC to increase budgets through user fees

CFTC and SEC to increase budgets through user fees

15 February 2011  |  8513 views  |  0 comments
SEC and CFTC propose joint IT task force

SEC and CFTC propose joint IT task force

20 October 2009  |  7026 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.www.fisglobal.comvisit www.finastra.comvisit wavestone-advisors.co.uk

Top topics

Most viewed Most shared
Live: EBAday 2017, day twoLive: EBAday 2017, day two
8947 views comments | 4 tweets | 5 linkedin
Worldpay pilots app-only mPOS for small retailersWorldpay pilots app-only mPOS for small re...
8874 views comments | 17 tweets | 27 linkedin
Live: EBAday 2017, day oneLive: EBAday 2017, day one
8157 views comments | 3 tweets | 4 linkedin
UK banks will need to change one million sort codes under ring-fencing rulesUK banks will need to change one million s...
7860 views comments | 8 tweets | 25 linkedin
Open banking rules to trigger new wave of challengersOpen banking rules to trigger new wave of...
6480 views comments | 21 tweets | 23 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job