U.S. COMMODITY FUTURES TRADI NG COMMISSIO N 

Three Lafayette Centre 


11 55 21st Street, NW, Washin gton, DC 20581 


Telepho ne: (202) 41 8-5 11 0 


Fa csimile: (202) 418-5522 


www.cftc.gov 

Office of the February 26,20 15 

Inspector General 

TO: 	 Timothy G. Massad, Chairman 


Commissione r Mark P. Wetje n 


Commissio ner Sharon Y. Bowen 


Commissio ner J. hristop y~~carl o 

FROM: 	 A. Roy Lavik 0 R~ Inspector General 

SUBJECT : 	 A Review of Space Utili zation of the C hicago Regional Office of the Commodity 

Futures T rad ing Comm iss ion 

Attached is a new review fro m my Offi ce evaluating leased space in the C hi cago Regional 

Office. We a re happy to provide furthe r information a t your requ est and conveni ence. 

Last year we reported that the CFTC was leasing three times the space needed to acconm1odate 

c urrent staff in Kansas C ity. l n contrast, this new review concludes that Chicago is at more than 

80% occupancy. Nevert heless we offer several recommendations that we believe wi ll increase 

the effi cient use of space w hich, in downtown Chicago, is a t a p remium. 

While we o bta ined ma nagem ent response to the Kansas City review, in t his in stance we d id not 

believe it wou ld be an efficie nt use ofreso urces in the Office ofExecutive Di rector to request the 

p reparation of a fom1a l response at this ti me. We will follow up in six months to evaluate the 

CFTC's response to our reco11U11endatio ns. 

I am very pleased w ith th e level of cooperation received from staff and managemen t in Logistics 

and Ope ra tions, and in the C hicago Regional Office. I appreciate yo ur continuing support of this 

Office. 

Attachme nt 

Cc (with a ttachment) : 


Anthony C . T hompson, Execu tive D irec to r 

 

 

 

A Review of Space Utilization of the Chicago Regional Office of the 

Commodity Futures Trading Commission 

Prepared by the 

Office of the Inspector General 

Commodity Futures Trading Commission 

February 26, 2015 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Commodity Futures Trading Commission 

Office of the Inspector General 

Executive Summary
 

In June 2014, we issued the first in a series of four reviews of CFTC leasing and space utilization 

rates.1 We noted that over the life of the CFTC’s leases the CFTC would spend approximately 

$74,000,000 for the lease of vacant offices. 

This review is the second in the series and focuses on the Chicago Regional Office. Chicago’s 

current overall utilization rate is the best of the four regions – 80%, compared to 73%, 63%, and 

33%, for Washington DC, New York, and Kansas City, respectively. 2 However, 80% occupancy 

still means that approximately one-fifth of the offices in Chicago are vacant, and that 

approximately $2.75 million will be spent on vacant offices in Chicago3 over the life of the tenyear lease.4 

We have identified no way to achieve a reduction in space by subleasing or returning space to 

the landlord. We have, however, identified a number of areas that are underutilized. Better 

utilization of these areas would increase office efficiency, improve staff morale, and increase the 

number of offices available in Chicago without resorting to expansion. Accordingly, this review 

focuses on potential improvements to existing space. 

We note that in December of 2014, the CFTC received an appropriation from Congress that 

expanded its budget for salaries and benefits by approximately $18 million. We have requested 

but currently have incomplete information concerning the CFTC’s intentions with respect to the 

total number of new hires or the distribution of these hires in Chicago; we accordingly take no 

position on this issue. However, we note that there is sufficient space for an additional 35 hires 

in Chicago, and that improvements to the current floor plan could increase that number to 

approximately 45. 

1 On June 4, 2014, our office released a report that analyzed leasing and occupancy levels in the Kansas City 

Regional Office. We found that approximately $3.6 million would be spent on vacant offices over the term of the 

lease, over two-thirds of the total. We recommended that the CFTC take immediate steps to dispose of the unused 

space to minimize spending on empty offices. Though not the focus of that review, we also looked at CFTC 

utilization in the aggregate, across all CFTC offices. We found that of the approximately $200 million to be spent 

on the lease of office space, approximately $74 million would be spent on vacant offices. We recommended that the 

CFTC institute a review of CFTC offices to identify and implement cost-saving measures. 

2 The CFTC uses a space management system called FOXfms. Our calculations and statistics are derived in large 

part from that system, and we have received assurance that it is up to date. According to FOXfms, these rates are 

accurate as of February 23, 2015. We note that the CFTC space system lists Kansas City’s occupancy rate at 64%. 

However, this higher rate is achieved by not counting any of the offices on the now abandoned half floor. To our 

knowledge, the CFTC has not yet subleased or returned that space to the landlord. Accordingly, the true occupancy 

rate in Kansas City remains approximately 33%. 

3 The average cost per year for the leased space on the ninth floor is approximately $422,000. The average cost per 

year for the leased space on the eleventh floor is approximately $955,000. The total average cost is approximately 

$1.38 million/year, or $13.8 million over ten years. A vacancy rate of 20% is consistent with total payments of 

$2.75 million for vacant offices over ten years. We note that this assumes current occupancy rates. 

4 When the CFTC expanded to the ninth floor, it negotiated a third amendment to its original lease. The lease for the 

ninth floor is 10.5 years, ending in June of 2022. The updated lease for the original space on the eleventh floor 

began immediately – prior to the build out of the ninth floor – and is for 12.5 years, ending on the same date of June 

2022. For the sake of simplicity, we have calculated lease costs throughout this review over a ten year period. 

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U.S. Commodity Futures Trading Commission 

Office of the Inspector General 

Table of Contents 

Executive Summary ........................................................................................................................ ii
 

Table of Contents ........................................................................................................................... iii
 

Background ..................................................................................................................................... 1
 

Facts ............................................................................................................................................ 1
 

Scope and Methodology ............................................................................................................. 1
 

Legal Background ....................................................................................................................... 1
 

Analysis........................................................................................................................................... 4
 

The Ninth Floor........................................................................................................................... 4
 

Open (Non-Private) Conference Rooms with Windows ........................................................ 5
 

Computer Room...................................................................................................................... 6
 

Training Room ........................................................................................................................ 6
 

Primary Conference Room (Room 9111) ............................................................................... 7
 

Secondary Conference Room (Room 9206) ........................................................................... 7
 

The “War Room" .................................................................................................................... 7
 

Other Ninth Floor Utilization Issues ....................................................................................... 7
 

The Eleventh Floor ..................................................................................................................... 8
 

Large Copy Room ................................................................................................................... 8
 

Large File Room ..................................................................................................................... 8
 

Hearing Room ......................................................................................................................... 9
 

The Market Watch Room...................................................................................................... 10
 

The “Dance Floor” ................................................................................................................ 10
 

Conclusions and Recommendations ............................................................................................. 10
 

Appendix 1 -- Chicago 9th Floor Plan ............................................................................................. 1
 

Appendix 2 -- Chicago 11th Floor Plan ........................................................................................... 2
 

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U.S. Commodity Futures Trading Commission 

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Background 

Facts 

The CFTC entered into a lease for its present location in 2001, initially occupying 40,750 SF on 

the 11th floor at 525 West Monroe, Chicago Illinois, 60661. In the summer of 2009, the CFTC 

negotiated to add approximately 20,000 SF on the ninth floor.5 

The CFTC expanded in every region during this period, and the impetus for the Chicago 

expansion appears to be the same as elsewhere. In brief, the CFTC anticipated expanded 

jurisdiction into the swaps and derivatives markets, and expected substantial and immediate 

increases in appropriations from Congress to accomplish its expanded regulatory mission. It 

entered into long-term leases on the basis of these expectations. When the CFTC’s expectations 

proved incorrect, the CFTC was left paying substantial sums for vacant office space. The scale 

of expansion in Chicago appears to have been relatively modest – approximately 50%. 

Scope and Methodology 

To complete our review, we interviewed 33 staff from Divisions and Offices in the Chicago 

region as well as a few key individuals in the Washington DC office. This included individuals 

in the Divisions of Enforcement, Market Oversight, and Swap Dealer and Intermediary 

Oversight, as well as the Offices of Data and Technology, the Executive Director, and 

individuals within the sub-offices of Financial Management and Logistics and Operations. Some 

witnesses were interviewed on multiple occasions. We requested and reviewed the relevant 

leasing documents, procurement documents, and architectural drawings, as well as other 

documents and CFTC communications concerning the Chicago Regional Office. We researched 

pertinent legal principals including federal leasing rules and standards, independent leasing 

authority, Government Accountability Office (“GAO”) reports and testimony, and governmentwide efforts to increase agency efficiency with respect to real estate. Finally, we reviewed the 

recent history of CFTC leasing. 

Legal Background 

The problem of empty and underutilized office space is by no means limited to the CFTC.6 

Congressional inquiries, committee hearings, as well as numerous articles in the press have 

discussed this issue; indeed, some agencies are apparently not aware of all of the real estate they 

own or lease. 7 

5 Third amended lease for the Chicago Regional Office, dated August 3, 2009. 

6 See GAO report, Federal Real Property: Excess and Underutilized Property Is an Ongoing Challenge 

(http://www.gao.gov/products/GAO-13-573T) (all internet addresses verified as of February 24, 2015). 

7 E.g., U.S. House Committee on Oversight and Government Reform, Subcommittee on Government Operations, 

Government Operations Oversight: Addressing Unused and Vacant Federal Property, Hearing 

(http://oversight.house.gov/hearing/government-operations-oversight-addressing-unused-and-vacant-federalproperty/) Article: http://www.whitehouse.gov/blog/2011/10/20/sale-cutting-waste-getting-rid-excess-real-estate, 

Article: http://cagw.org/media/wastewatcher/time-get-real-federal-property, 

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U.S. Commodity Futures Trading Commission 

Office of the Inspector General 

In January 2003, the GAO designated federal real property as a high-risk area, citing the 

government’s overreliance on costly, long-term leasing as one of the major reasons.8 More 

recently, GAO declared that, “[t]he federal government faces long-standing problems in 

managing real property, including an overreliance on leasing, and excess and underutilized 

property.”9 With regard to excess and underutilized space, GAO stated that “agencies often do 

not have a strong understanding of the real property held by other agencies and may lack the 

authority or expertise to lease their own underutilized property to other federal agencies.”10 

GAO noted that the agencies it reviewed “have taken some actions to dispose of and better 

manage these properties, including using excess and underutilized property to meet space needs, 

consolidating offices to use space efficiently, and reducing employee workspace to use space 

more efficiently.”11 

The General Services Administration (“GSA”) is responsible for creating rules and standards 

governing federal leasing, and it assists agencies by negotiating leases on their behalf. 12 Some 

agencies, like the CFTC, have independent leasing authority and negotiate their own leases 

without reference to GSA.13 But independent leasing authority is more than the ability to 

separately negotiate leases; it also includes independence from GSA rules and regulations 

designed to, for instance, minimize government waste. Exercising that independence, the CFTC 

declined until February of 2011 to develop any written leasing standards or procedures of its 

own. Consequently, there appear to have been no CFTC or other written rules that directly 

governed the CFTC’s leasing process.14 

8 Federal Real Property: Strategy Needed to Address Agencies’ Long-standing Reliance on Costly Leasing, GAO08-197 (January 2008) (http://www.gao.gov/assets/280/271449.pdf). 

9 Federal Real Property: High-Risk Designation Remains due to Persistent Management Challenges, GAO-13-422T 

(February 2013) (http://www.gao.gov/products/GAO-13-422T). 

10 Id. 

11 Id. 

12 The Comptroller General has described the process by which the government leases real property as follows: 

Congress has centralized in GSA the authority to lease real property and facilities for the use of federal 

agencies. The Federal Property and Administrative Services Act of 1949 (FPASA) transferred to GSA the 

authority to lease real property and facilities on behalf of the federal government, subject to several 

exceptions not relevant here. FPASA, ch. 288, § 3, 63 Stat. 377, 378 (June 30, 1949), as amended, codified 

in 40 U.S.C. § 585. As presently written, this authority allows GSA, on behalf of all federal agencies, to 

enter into leases of real property and facilities to meet the government's needs for periods of up to 20 years 

and to obligate fiscal year funds without violating the Antideficiency Act, 31 U.S.C. § 1341(a)(1)(B). 40 

U.S.C. § 585. See B-309181, Aug. 17, 2007. 

Matter of: National Transportation Safety Board--Application of Section 1072 of the Federal Acquisition 

Streamlining Act (41 U.S.C. § 254c) to Real Property Leases, B-316860, 2009 U.S. Comp. Gen. LEXIS 89, April 

29, 2009 (http://www.gao.gov/decisions/appro/316860.htm). 

13 Without specific statutory authority and absent a delegation of authority from GSA, a federal agency may not 

lease real property or facilities for its own use or on behalf of any other government entity. Matter of: Interagency 

Agreements -- Use of an Interagency Agreement between the Counterintelligence Field Activity, Department of 

Defense, and GovWorks to Obtain Office Space, B-309181, 2007 U.S. Comp. Gen. LEXIS 143, Aug. 17, 2007 

(http://www.gao.gov/decisions/appro/309181 htm). 

14 The lease in Chicago was negotiated prior to February of 2011. CFTC Management states that it followed the 

same standards prior to 2011, but had not reduced them to writing. We note that the CFTC’s written standards 

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U.S. Commodity Futures Trading Commission 

Office of the Inspector General 

Over the years, however, Presidents of the United States have issued executive orders to reform 

and improve federal leasing standards. In general, these require government agencies to 

efficiently utilize space.15 Some are more specific, requiring agencies to reduce the amount of 

work space to that which is essential for known agency missions, and ensuring that the amount 

of office space per person is the minimum necessary to accomplish the task.16 For instance, in 

February of 2004, the President signed Executive Order 13327 (EO 13327) which, among other 

things, established a Federal Real Property Council to address issues in property acquisition and 

management, including adding as a performance measure for covered Agencies “changes in the 

amounts of vacant Federal space.”17 Similar in purpose to the Executive Orders, President 

Obama issued a Presidential Memorandum on June 10, 2010, requiring agencies to dispose of 

unneeded federal real estate.18 This included a specific directive to “take immediate steps to 

make better use of remaining property assets as measured by utilization and occupancy 

rates....”19 

Finally, we have the OIG’s own regulatory mandate to detect and prevent waste and abuse, and 

to recommend policies designed to promote economy, efficiency, and effectiveness in 

connection with programs and operations of the Agency.20 In sum, despite the absence of 

written rules requiring minimum levels of utilization or reassessment of leases in light of 

changed budgetary assumptions, the CFTC must still strive to limit waste in this area. 

developed in 2011 focus on the initial leasing process, and do not address any circumstances under which the CFTC 

should reassess its space needs – due, for instance, to underutilization or changed budgetary circumstances. 

15 Executive Order 13576--Delivering an Efficient, Effective, and Accountable Government, June 13, 2011, 

(requiring “frequent data driven reviews” of, among other things, “improving the management of Federal real 

estate”) (http://www.whitehouse.gov/the-press-office/2011/06/13/executive-order-13576-delivering-efficienteffective-and-accountable-gov; Executive Order 13589 -- Promoting Efficient Spending, November 9, 2011, 

(requiring agencies to “act in a fiscally responsible manner, including by minimizing their costs...”) 

(http://www.whitehouse.gov/the-press-office/2011/11/09/executive-order-13589-promoting-efficient-spending). 

16 Executive Order 12411 -- Government work space management reforms, March 28, 1983, (requiring agencies “to 

institute fundamental changes in the manner in which Federal work space is managed to ensure its efficient 

utilization.”) (http://www.archives.gov/federal-register/codification/executive-order/12411.html). 

17 EO 13327 is available here: http://www.gpo.gov/fdsys/pkg/FR-2004-02-06/pdf/04-2773.pdf. EO 13327 did not 

apply to CFTC. The other Executive Orders cited in this paper did apply to CFTC. 

18 Presidential Memorandum--Disposing of Unneeded Federal Real Estate, June 10, 2010 

(http://www.whitehouse.gov/the-press-office/presidential-memorandum-disposing-unneeded-federal-real-estate). 

This memorandum applied to CFTC. 

19 Id. 

20 5 USC App. 3, § 2(1). 

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U.S. Commodity Futures Trading Commission 

Office of the Inspector General 

Analysis
 

Over the life of its ten-year lease ending in 2022, the CFTC will pay an average of approximately 

$117,000/month, or $1.38 million/year.21 Of the 175 offices, 35 are vacant. At 80% occupancy, 

this means that the CFTC is paying approximately $280,000/year for vacant office space. 

Because some swing space is desirable for visitors, or to accommodate minor staffing changes, 

we use a 95% target for occupancy. Given this target, the CFTC’s payments for vacant offices in 

Chicago are reduced to approximately $210,000/year. In total, the CFTC will spend 

approximately $2.1 million over ten years on empty offices in Chicago. 

Because the CFTC occupies 80% of one and one-half floors, we have identified no efficient 

means of eliminating excess space in terms of subleasing or returning space to the landlord. 

However, through our interviews with staff we have identified substantial space that is under or 

poorly utilized. The remainder of our review focuses on recommendations to management, all of 

which come from staff interviews, to better utilize these areas. 

We have attached two floor maps, which correspond to the 9th and 11th floors occupied by the 

CFTC.22 The starred areas have been identified as underutilized. Because these rooms lack 

official usage statistics – and indeed, we do not believe tracking such figures would be an 

efficient use of CFTC resources – we arrived at utilization estimates by interviewing staff. We 

describe common areas as underutilized when our estimates indicate use is less than 20% of each 

day, and most of our recommendations deal with underutilized areas.23 We estimate that the 

square footage of underutilized areas is approximately 5150 SF out of a total 37,924 SF, or 

13.5% of the Chicago office.

24 

The Ninth Floor 

The ninth floor consists primarily of the Division of Enforcement. CFTC Enforcement is 

charged with investigating and prosecuting violations of the Commodity Exchange Act. The 

work they do is essential to detecting and preventing fraud on the public and securing public 

confidence in futures and swaps markets. 

Enforcement work is sensitive and confidential, involving both confidential trade information 

protected under section 8 of the Commodity Exchange Act25 and personally identifiable 

information (PII). Unfortunately, space on the ninth floor is not conducive to confidentiality; of 

the ten total conference areas on the ninth floor, visitors must walk through internal Enforcement 

21 This estimate excludes minor costs associated with utilities. 

22 See Appendix 1 & 2. 

23 Underutilization often appears to be the result of perceived flaws with the design of a particular area. We also 

discuss a few areas that are sufficiently utilized, but for which staff suggested improvements during our interviews. 

24 Total square feet can be measured in various ways. Our figure of 37,924 SF excludes hallways and similar nonroom areas. The total square footage with no exclusions would be 56,553 SF. 

25 7 U.S.C. § 12(a). 

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U.S. Commodity Futures Trading Commission 

Office of the Inspector General 

space to reach nine of them.26 This raises security and confidentiality concerns, and as a 

practical matter creates problems for Enforcement staff – who must always be on guard against 

visitors seeing confidential documents or hearing confidential Enforcement conversations. 

Chicago CFTC Enforcement attorneys come largely from top private-sector law firms.27 When 

they join the CFTC they take a substantial pay cut, and switch from expensive décor and a 

window office to a windowless inner office, often with a support pillar taking up part of a wall, 

and used furniture. While CFTC cannot match a private law firm in amenities, we note that the 

current space configuration prioritizes natural light for under-utilized conference space instead of 

offices. We found this unusual, and confirmed that this space configuration – locating 

substantial conference and common space in windowed areas – is unique not only in Chicago but 

throughout all offices at the CFTC including headquarters. 

These were the major concerns expressed by Enforcement staff, and we share them. Our 

recommendations occur in the context of the specific areas discussed below. 

Open (Non-Private) Conference Rooms with Windows 

On the ninth floor, CFTC Enforcement has ten conference rooms. Seven of these conference 

rooms are open, with no wall or door partitioning them from the hallway and other offices.28 

These open-air conference rooms received, by far, the largest number of complaints from staff, 

and utilization estimates ranged between 5% and 20%. 

Reasons provided for under-utilization included: 

•	 Confidentiality and liability concerns with respect to sensitive Enforcement matters, since 

visitors from outside the CFTC might pass by these areas and see or hear confidential 

matters; 

•	 The conference rooms are adjacent to one another; holding simultaneous conferences in 

close proximity is difficult when sound travels so freely, and it is difficult to hear phone 

and video conference calls; 

•	 Holding a conference disrupts all nearby offices; 

•	 The conference rooms have large windows, which creates glare on the video conference 

screens. 

Of the staff interviewed, 100% agreed that some or all of the open-air conference rooms should 

be converted to offices. Most staff agreed that any remaining conference rooms should be 

walled off to address the concerns listed above. We estimate converting all of the areas to 

offices would create seven large window offices, while losing two cubicles that currently fill one 

of the conference room spaces. 

26 The tenth conference room is discussed at page 7 (“Primary Conference Room (Room 9111)”). 

27 In the past ten years, 14 of 19 Chicago Enforcement hires have been from medium to large private sector firms. 

28 One of these conference rooms is currently occupied with two cubicles and utilized by interns. 

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U.S. Commodity Futures Trading Commission 

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We recommend that the Commission prioritize this particular space improvement. We share 

staff members’ concerns that current space plan creates a risk that the confidentiality of 

Enforcement discussions may be breached, 29 and this is the only recommended space 

improvement with an associated problem of this sort. We make no recommendation as to the 

split between closed conference rooms and offices; however, we recommend that the 

Commission consider the views of Chicago Enforcement staff. Our interviews revealed a 

perception that the current underutilized layout was imposed over the protest of the Chicago 

Enforcement staff who would actually be using the space. 

Computer Room 

The ninth floor has an open area the size of a window office that contains a computer that is used 

to anonymously view websites of potential targets for investigations. Of staff interviewed, 100% 

agreed that this could be more efficiently done in a closed inner office or more private cubicle. 

Besides creating space for another window office, it would serve to better protect the 

confidentiality of the research. We recommend that this area be converted into a window office, 

and that the computer be moved to an enclosed (and more private) area. 

Training Room 

The ninth floor includes a large room with a long wall of windows, approximately 765 SF, that 

staff estimated they use approximately four times a year, for 15 minutes to an hour on each 

occasion. It is the largest room in Chicago aside from the hearing room, and contains numerous 

desktop computers and a projector screen for presentations. Staff estimated that they used the 

desktop computers for training an average of between zero and one times per year.30 Staff 

observed that during the few presentations attended, the desktop monitors were merely in the 

way of the presentation on the projector screen, and that glare from the windows made the 

projection difficult to see. 

We recommend that the training room be converted to offices, conference rooms, or a 

combination of offices and conference rooms. Most training at the CFTC now occurs on desktop 

computers in staff’s individual offices, and staff indicated a preference for training on the 

desktop computer they use every day. To the extent training for larger groups remains 

necessary, in which many people must simultaneously work on computers in the same room, we 

recommend that laptops or desktops be set up and taken down as needed; permanent reservation 

of space for such limited use is inefficient.31 

29 Examples of potential risks provided by staff were not limited to outsiders walking by an ongoing conference. 

Open-air conference rooms risk documents being inadvertently left behind, or litigation plans left on a whiteboard, 

or even simply a loud conversation being overheard by attorneys or market participants who are on the phone with 

Enforcement staff whose offices are proximate to the conference rooms. 

30 Staff did say that they used to attend summer training presentations in the room somewhat more frequently. 

31 A staff person observed that the training room is uniquely set up with additional power outlets and electricity to 

support multiple computers running at the same time. We do not suggest that the training room must never be used 

for training; rather, we recommend that the room be able to support multiple functions, so as to increase the 

presently low rate of utilization. 

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U.S. Commodity Futures Trading Commission 

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Primary Conference Room (Room 9111) 

Prior to August 2014, the 9th floor did not have a conference room that was accessible to the 

public without first escorting them through confidential Enforcement areas. After a visit to the 

Chicago Regional Office, the Executive Director approved a project to permit access to 

conference room 9111 without first going through internal CFTC areas. This project was 

completed on September 4, 2014. Staff widely viewed this as a significant improvement, and we 

share their assessment. 

We note that immediately adjacent to the primary conference room 9111 is an area with low 

tables and chairs. Outside counsel and clients cannot use this space without risk of overhearing 

confidential CFTC Enforcement matters. Staff estimated utilization of this area as close to zero. 

We recommend only that the CFTC consider options for this space that do not leave it 

underutilized. 

Secondary Conference Room (Room 9206) 

The secondary conference room is accessible only by bringing outside attorneys through internal 

CFTC space. Staff raised confidentiality concerns, and we share them. We recommend that the 

CFTC review ways in which to create additional areas accessible to outside attorneys and clients 

that do not permit access to internal CFTC areas. We note that there are no CFTC offices 

between this conference room and the elevators, and that moving or adding a door with key card 

access between the common areas and the conference room may help to address this issue. 

Outside the second conference room is a second area that consists of a few chairs in an otherwise 

open space. Staff estimated its usage as close to zero. We recommend that CFTC management 

consult with Chicago Enforcement to determine better uses for this space. 

The “War Room" 

The CFTC War Room is a small room with a center table and shelves with various hard-copy 

CFTC resources lining the walls. CFTC Enforcement staff largely view this room as undesirable 

to use for conferences; some staff mentioned poor lighting and a lack of electronic capabilities, 

including no ability to video conference with the other regions. We recommend that the CFTC 

consult with Chicago Enforcement staff to determine a way to improve utilization of this room. 

Other Ninth Floor Utilization Issues 

Enforcement staff noted that visiting attorneys have no area in which to talk privately with their 

clients. This is primarily because only one conference room in the ninth floor Enforcement area 

is accessible without entering into internal CFTC areas, and no additional private area is attached 

to that conference room for visiting attorneys and their clients. Our interviews revealed that 

groups of attorneys, witnesses, and targets are literally forced to discuss their cases by the 

elevators or in the bathroom – each of which is hardly private. We view this as a basic and 

necessary functionality for litigators; and while we are as committed as the CFTC itself to 

investigating and prosecuting those who violate the Commodity Exchange Act, defense counsel 

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U.S. Commodity Futures Trading Commission 

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should still have a separate and private room to converse with a witness or target during an 

investigative interview. We recommend that the CFTC consider ways to provide such a space. 

The Eleventh Floor 

The eleventh floor houses the Divisions of Market Oversight, Clearing and Risk, Swap Dealer 

and Intermediary Oversight, as well staff in the Office of Data and Technology. Staff on the 

eleventh floor had fewer overall complaints, and we identified fewer areas of conspicuous 

underutilization.32 

Large Copy Room 

There is an area of approximately 624 SF that contains only a single copier and some boxes of 

paper on the floor; these take up only a small percentage of the room’s available space. It is used 

primarily not for its intended purpose; instead, staff use it to walk between areas without having 

to use a keycard. Staff unanimously agreed that this was a poor use of space. Suggestions 

included turning it into a conference room or offices. We note that this room is close enough to 

the elevator bank to serve as an external conference room – that is, one that might be accessible 

to visitors without having to take them through internal CFTC areas. Given the relative lack of 

such rooms presently, we recommend that the CFTC consider adding a conference room in this 

presently underutilized area. 

Large File Room 

This file room is approximately 964 SF and is, predictably, filled with files. A quick search of 

this room showed files with time-stamps ranging back to 1978. Interviews with staff indicated 

that this room is not widely used; however, it remains necessary because the CFTC continues to 

require some forms to be filed by fax or in hard copy. 

We understand that progress has been made towards electronic filing of all documents, and we 

understand that further progress is planned. Nevertheless, we do not believe it is appropriate in 

2015 for the CFTC to be accepting hard copies of documents in anything but extraordinary 

circumstances.33 Presently, some forms are filed in hard copy or fax, then individually scanned 

and uploaded as PDFs into a CFTC system. Others are never scanned; they are simply 

physically stored in the file room in case they are one day needed. 

32 The eleventh floor also differs from the ninth in that the divisions have generally competed for preferred offices, 

usually offices with windows. This competition for resources caused some angst among staff, particularly because 

Divisions would reserve unused window offices for years in hopes of eventually hiring, while staff labored in inner 

offices immediately across from the empty window office. We viewed this as an inefficient use of space. Prior to 

the completion of this report, the head of the Chicago Regional Office completed a review of this procedure, 

developed a new one, and obtained sign off from the heads of every Division with staff in the Chicago Region for a 

more equal and efficient way to distribute offices among the divisions. 

33 For instance, some victims and witnesses in cases brought by the Division of Enforcement are not represented by 

counsel and do not have access to the technology necessary to scan their paper documents. In such a circumstance, 

it is of course incumbent upon the CFTC to accept production in whatever means available to the victim or 

supporting witness. 

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In interviews with staff, there was a consensus that 100% electronic filing would be preferred. It 

would improve efficiency not only for collecting the data, but in processing and analyzing the 

data after it is collected. And more immediately relevant to this review, a pure electronic filing 

system would free up a large room in the Chicago Office; given the value of downtown Chicago 

real estate, this would result in a measurable efficiency gain. We recommend that the CFTC 

prioritize its move to electronic filing for all of its forms, and that it then consider alternative 

uses for this area. In the short term, we recommend the CFTC consider off-site storage as 

appropriate. 

Hearing Room 

The largest room in the Chicago office is the “Hearing Room,” though in recent years it has not 

been used for hearings.34 Presently it is used for regional events, including training, office 

parties, “town-hall meetings” and occasions when a high-ranking official such as the Chairman 

or a Commissioner addresses the entire CFTC staff in Chicago. Staff broadly agreed on the 

necessity of a room large enough to contain most or all Chicago staff. Were these the only uses 

to which the room could be put, we would disagree; setting aside so much space solely for the 

occasional large event is less than efficient, in our view. 

However, the room can also be split into three sections with dividing walls; this permits the room 

to be used for conferences. The flaw in this design is that dividing walls permit sound to flow 

freely between rooms. Thus, more than one conference can be held simultaneously only if none 

of them include confidential material, or include visiting attorneys, or are particularly loud. 

Also, the hearing room retains the judicial bench from the period in which hearings were a 

regular occurrence. 

Accordingly, we recommend that the CFTC improve the utility of the Hearing Room by soundproofing the dividing walls. We also recommend that the CFTC determine its continued need for 

the judicial bench. Interviews with staff suggested that there was no continued need for the 

bench and that it occupied space that could be better used. However, the CFTC recently 

announced that it would begin bringing more cases before Administrative Law Judges.35 

Accordingly, we are uncertain as to the potential utility of the judicial bench, and recommend 

only that the CFTC decide the matter after careful consideration of its need for full-time 

Administrative Law Judges. 

34 In December 2011 the CFTC eliminated its sole Administrative Law Judge (who had 20 years’ experience with 

adjudications under the Commodity Exchange Act) through a reduction in force. In November 2014, the Wall Street 

Journal reported that the CFTC plans to direct more cases to ALJs because it will save money. Eaglesham, Jean. 

“CFTC Turns Toward Administrative Judges.” Wall Street Journal 9 Nov. 2014 (http://www.wsj.com/articles/cftcturns-toward-administrative-judges-1415573398). In the article, CFTC’s Director of the Division of Enforcement 

stated “[the] overwhelming reason for this change is resources.” Id. The article went on to state, “Administrative 

cases are typically far faster and cheaper for agencies to litigate than ones in federal court, according to officials.” 

Id. 

35 See fn.34. 

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The Market Watch Room 

The market watch room contains a computer with access to current market data via Bloomberg, 

as well as a number of other computers, video conference capability and a number of television 

news channels broadcast concurrently. The video conference equipment is permanently linked 

to a similar room in Washington DC, and staff from the Division of Market Oversight (“DMO”) 

occupy these rooms in both regions. Because the video feed between locations is on all day, few 

personnel outside of DMO use them. Personnel from other divisions suggested that they would 

use the room absent the permanent link to DMO staff in Washington DC.36 

While no formal usage statistics are kept, it is rare to see more than one person in the market 

watch room. And that one person is almost always using the single Bloomberg machine, which 

could be placed anywhere. We do not believe it appropriate in this instance to comment on 

usage policies or to recommend specific ways to improve utilization; the underlying dynamics 

are too complex. Rather, we note only that the room appears underutilized and recommend that 

CFTC fix the problem by first determining whether DMO can efficiently utilize the room, and if 

not whether opening the room to other divisions would improve utilization. We further 

recommend that the CFTC include staff in this process. 

The “Dance Floor” 

Outside of the market watch room is a windowed area with polished wood floors. The polished 

wood floors (and complete lack of use) are what engendered staff to call it the Dance Floor. If 

the CFTC’s mission were to impress visiting taxpayers with views of Chicago, this might be the 

way to do it. But it is not, and the space is large enough for an additional office, so we 

recommend the CFTC consider ways to better utilize this space.37 

Conclusions and Recommendations 

In Chicago, compared with headquarters and the other regional offices, the CFTC is doing its 

best job of utilizing leased space. To be sure, 35 offices remain vacant as of the date of this 

review; however, occupancy rates are high enough that we can identify no way in which space 

could be feasibly subleased or returned to the landlord. Further, we have reason to believe that 

occupancy levels will improve in light of CFTC’s FY 2015 budget. 

Nevertheless, we have identified approximately 5,150 SF of underutilized space, or 13.5% of the 

total space in the Chicago Regional Office. If the CFTC were to prioritize new offices, we 

believe at least ten could be created through better use of space; we believe better use of space 

36 From DMO management we learned that the permanent video link is intended to help the staff of Washington DC 

and Chicago coordinate their work. However, the Chicago staff only rarely use the room. Broadly speaking, our 

interviews revealed that some Chicago staff believe that they can accomplish their work better from their individual 

offices. Management, on the contrary, believes it useful for Chicago staff to interact more with staff in Washington 

D.C. We express no view on the relative efficiency of working in the market watch room or in individual offices. 

37 We emphasize that we are not against 100% of common areas having a window. For instance, the lunch room on 

the ninth floor has one. Rather, we are against underutilized common areas having windows, especially when staff 

place a premium on window offices. 

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U.S. Commodity Futures Trading Commission 

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would also improve morale for Chicago Enforcement staff. Accordingly, our primary 

recommendation is that the CFTC avoid expanding its lease in Chicago (or in other regions) until 

it has improved its utilization of the space for which it is already paying. 

Our secondary recommendation is that the CFTC use this review to guide it in interviewing staff 

for ways to improve the utilization of its Chicago office space. We believe that poor space 

planning particularly impacts the Division of Enforcement. It not only makes their jobs more 

difficult but negatively impacts morale and risks improper disclosures of confidential 

Enforcement discussions and documents, as well as PII and trade data protected under section 8. 

It is our hope that this review will help to raise the visibility of these matters. 

Finally, we note once again that Congress has appropriated an increase in funds to the CFTC for 

FY 2015. If a portion of those funds are used to improve the utilization of space and to hire 

additional staff in Chicago, we believe that the Chicago Regional Office can effectively 

eliminate its spending on vacant offices and remedy long-term design flaws that contribute to the 

underutilization of common areas. We plan to follow up on this review in six months to track 

the CFTC’s progress. 

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U.S. Commodi ty Fu tures T rading Commission 

Office of the Inspector Gen eral 

Appendix 1 - Chicago 9th F loor Plan 

*Space could be put 

to beller use 

0 Non-occupiable (23rooms) 

0 Occupied (38 rooms) 

0 'bcant(14~) 

Chicago -9 

Color Scheme:Occupancy 

Prinled on Thu Feb 12 

2015 

Appendix 

1 

U.S. Commodity Futmes Trading Commission 

Office of the fuspector General 

Appendix 2 --Chicago 11th Floor Plan 

*

Space could be put 

to better use 

0 f'loo-occupiable (42 rooms) 

DOccupied (99 rooms) 

0 lhler apac (I rooms) 

0 Vacant (19rooms) 

Chicago -11 

Color Scheme: Occupancy 

Printedon Thu Feb 12 

2015 

Appendix 

2