CFTC Lays Out Strategic Priorities through 2024
In its 2020-2024 Strategic Plan the CFTC prioritized efforts to strengthen the derivatives market, promote innovation and maintain a strong enforcement program.
The CFTC's strategic goals include:
- strengthening the derivatives market by (i) maintaining consistent central counterparty ("CCP") oversight and working with international counterparts to reduce market fragmentation; (ii) monitoring and optimizing requirements for margin and capital; and (iii) advancing policies that deepen liquidity and increase transparency without reducing the risk-mitigating benefits of regulations;
- strengthening the commitment to "stakeholders in the agricultural community" in order to provide "tools to hedge risk and receive fair prices," through (i) ensuring compliance burdens are proportionate to the risk profiles of agricultural stakeholders’ activities; (ii) improving market accessibility for end users; (iii) increasing protections for customer assets and information; and (iv) educating Main Street on risk management and avoiding fraud;
- promoting innovation by (i) utilizing principles-based regulation where appropriate; (ii) increasing agency decision-making transparency; (iii) harmonizing regulations that overlap between CFTC and SEC jurisdiction; (iv) developing "a holistic framework to promote responsible innovation in digital assets"; and (v) re-evaluating regulations that produce burdens disproportionate to the regulatory purpose served;
- maintaining a strong enforcement program by (i) implementing fair, transparent and consistent practices, including creating bright-line rules where necessary; (ii) coordinating efforts with other criminal and civil enforcement authorities; and (iii) focusing market surveillance on areas where fraud is most likely to occur; and
- improving (i) operational efficiency and (ii) the collection, use, analysis and protection of data.