“In light of the MF Global insolvency, the commission must remain vigilant in its oversight of the futures markets for both systemic and operational risks,” Sommers and O’Malia said in a joint statement, according to Agri-Pulse. “Unfortunately, resources have been redirected to Dodd-Frank-related rulemakings and reduced the [CFTC's] capacity to appropriately oversee these markets.”
After reading the regulator’s 2011 Annual Performance Report, the commissioners released their dissenting statement.
“This document is filled with statements that make it clear that Dodd-Frank rulemaking is a priority and will be pursued at the expense of other critical goals and priorities,” the commissioners said, Agri-Pulse reports.
Sommers and O’Malia contend that the agency overlooked 43 percent of its oversight responsibilities, particularly in the technology market and rule enforcement reviews by the Division of Market Oversight in the futures market.
The commissioners said that MF Global was a “startling wake-up call” and that the CFTC should ensure that its “current obsession with the Dodd-Frank rules [does] not compromise its existing mission.”
“The [CFTC] must use this report to review its shortcomings and make adjustments to both its budget and surveillance priorities to ensure that critical futures market oversight is not neglected,” the statement said, according to Agri-Pulse. “Failure to make these adjustments [exposes] futures markets to both systemic and operational risk and could cost customers hundred of millions of dollars.”