All the tea leaves indicate the President’s budget proposal is DOA, but don’t throw it in the trash just yet . . . Embedded in the lengthy proposal is a significant increase for the Commodity Futures Trading Commission. The President supports raising the budget from $205 million in 2012 to $308 million in 2013. In a budget full of cuts, this is an almost 52% increase largely justified by Dodd-Frank requirements. Also important is the absence of a user fee from the Administration’s request. Instead of including it in the budget, the President said he “strongly supports” legislative efforts to fund the Commission with user fees. CMC, however, is doubtful that this Congress would approve such a proposal.
It is also doubtful the Commission receives a $308 million budget in 2013 as Congressional appropriators significantly undercut the President Obama’s requests. Regardless, you can be sure Chairman Gensler will make every opportunity he can to push for the dollars to hire more staff and expand investment in technology. In a document prepared for the Appropriations Committee, Gensler already said the budget request “strikes a balance between important investments in technology and human capital” and said the additional resources are necessary due to the agency’s expanded mission and scope.
Also of note is the Administration’s proposal to partially repeal the 60/40 tax treatment for futures and options trading. Treasury estimates its repeal could raise $1.2 billion in revenue over five years. CMC has successfully fought off past attempts to repeal this provision in the past and we will continue to advocate for its retention.
