Global Financial Strategy - Dodd-Frank Act cannot be delivered without CFTC budget boost

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Dodd-Frank Act cannot be delivered without CFTC budget boost

Wednesday 20 October 2010 – by Will Henley

US regulator the Commodity Futures Trading Commission is “precariously” underfunded and will be unable to implement new regulatory reforms without a significant boost in resources, according to a senior official.

Commissioner Michael Dunn, speaking at a public meeting on proposed rules on Tuesday, warned that it may be “virtually impossible” to roll out the Dodd-Frank Wall Street Reform and Consumer Protection Act despite recent budgetary increases.

Dunn said: “I am very concerned with the precarious budgetary situation the CFTC finds itself in. To be blunt, we cannot implement the entire Dodd-Frank Act and complete our pre-Dodd-Frank duties without a substantial budget increase.

“Despite the fact that this agency has been underfunded for years, the CFTC has consistently provided the highest quality regulatory environment possible for the markets it regulates and its users.

“With the monumental, resource intensive duties mandated by Dodd-Frank, it would be virtually impossible to continue this tradition without additional funding no matter how long and hard we work.”

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The CFTC’s budget for the 2011 fiscal year, approved by the Senate Appropriations Subcommittee, has risen to $286m.

A commissioner at the CFTC since 2004, Dunn served as acting chairman between January and May 2009.

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