CFTC and SEC Make Budget Requests

In separate requests, the Securities and Exchange Commission and the Commodities Futures Trading Commission laid out its priorities when making budget requests.

The SEC said that investor protection, capital formation, and market integrity were priorities when making their formal budget request. Here’s part of a press release from the SEC.

SEC“The Securities and Exchange Commission today announced a $1.658 billion budget request for fiscal year 2019 to support its core mission and expand oversight and enforcement in emerging areas such as financial innovation, market structure and cybersecurity. The SEC’s funding is offset by matching collections of fees on securities transactions and is budget and deficit neutral.

“This year’s budget request reflects our top priorities of protecting investors and making sure we continue to have the most vibrant and well-functioning capital markets in the world,” said Chairman Jay Clayton. “With the exceptional work and commitment of dedicated staff, the SEC will continue striving to maintain and expand an environment conducive to capital formation while ensuring investor protection.”

Meanwhile, CFTC Commission Brian Quintenz noted that the agency would increase its workforce to 716 with this budget request; that’s up from 670 employees. Here’s Quintenz’s statement.

“I support Chairman Giancarlo’s FY 2019 $281.5 million budget request. The Chairman has undertaken a thoughtful and disciplined approach to determining the resources necessary for the agency to fulfil its mission and position it as a 21st Century regulator.

“While the Chairman’s budget request increases the agency’s FTE (Full Time Equivalent) employees to 716, it is important to note that the agency’s FTE count has steadily decreased over the past three years due in part to flat funding. In FY 2016, the agency had 714 FTEs while in FY 2017 it had 689 FTEs and only 670 FTEs this year. From that perspective, the current request asks for roughly the same number of FTEs as three years ago. However, the composition of the Chairman’s proposed FY 2019 FTEs will be quite different from what the agency maintained in FY 2016 and will help realize the Chairman’s vision for the agency: increased interfaces with fintech advancements, robust and timely examination processes for clearinghouses, and enhanced econometric analyses of rules, products, and markets. I fully support this vision, and as the sponsor of the Commission’s Technology Advisory Committee, I am excited to play a role in advancing the agency’s understanding of, and participation in, innovative technological concepts in our markets.

“We live in a world of scare resources. Every organization wishes it had more financial and human capital. Regardless of Congress’ ultimate appropriation to the agency, the CFTC remains dedicated to streamlining its operations and prioritizing its market regulation to best utilize the funding that it receives.”

These requests are part of a $4.4 trillion budget request which President Trump has made of Congress. This budget, if passed in its current form, is projected to add $7 trillion to the US debt over the next debt.

The total US debt current stands at just over $20 trillion.

According to the US Constitution, the US Congress has the exclusive power of the purse strings, but the President proposes a budget which is then debated in Congress.

Congress then passes a budget, be it the President’s or something different.

As part of the process, by the SEC Chair, Jay Clayton, and the CFTC Chair, Christopher Giancarlo, will testify in front of Congress and argue for their requests.