U.S. COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW, Washington, DC 20581

Telephone: (202) 418-5110

TO: Heath Tarbert, Chairman

Brian Quintenz, Commissioner

Rostin Behnam, Commissioner 

Dawn Stump, Commissioner

Dan Berkovitz, Commissioner

FROM: Judith A. Ringle, Deputy Inspector General/Chief Counsel

DATE: January 4, 2021

SUBJECT: Inspection and Evaluation of CFTC’s Compliance with E.O. 13950, Combating 

Race and Sex Stereotyping (September 22, 2020) (CFTC OIG 2021-IE-1)

Introduction and Executive Summary

Executive Order (EO) 13950 Combating Race and Sex Stereotyping (September 22, 2020)(the 

EO), at section 6(c)(ii) required each agency head to request the Inspector General each year to 

thoroughly review and assess agency compliance with the requirements of the EO in the form of 

a report submitted to the Office of Management and Budget (OMB), with a current deadline of 

December 31, 2020. On November 9, 2020, we received the required request through Summer 

Mersinger, acting as the senior political appointee assigned responsibility for ensuring 

compliance with the EO (required at EO section 6), which we verbally confirmed with the 

Chairman. 

This report presents our findings. The CFTC is compliant. 

Objective

Review and assess agency compliance with the requirements of the EO.

Criteria

• The EO

• OMB M-20-34, Training in Federal Government, September 4, 2020

• OMB M-20-37, Ending Employee Trainings that Use Divisive Propaganda to Undermine

the Principle of Fair and Equal Treatment for All, September 28, 2020

• Office of Personnel Management (OPM) Guidance on Mandatory Review of Employee

Training under E.O. 13950 September 22, 2020, October 2, 2020
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Standards

We completed our evaluation as an Inspection and Evaluation (I&E) in accordance with the 

Counsel of Inspectors General on Integrity and Efficiency (CIGIE) Quality Standards for 

Inspections and Evaluations (2012) (I&E Standards). 

In addition, the CIGIE issued draft guidelines for planning and reporting evaluations conducted 

under the EO (CIGIE draft guidelines). We followed the CIGIE draft guidelines as applicable to 

CFTC (see below).

Scope

Agency actions under the EO from September 23, 2020, through December 21, 2020. We 

determined that certain requirements in the EO did not apply to CFTC, and we did not evaluate 

compliance with those requirements. Specifically, the requirements at Section 5, pertaining to 

Federal Grant program requirements, did not apply to CFTC. 

Methodology

In order to complete this I&E, we requested the following items:

I. All contracts entered into on or after November 21, 2020. 

II. All diversity and inclusion trainings approved after September 23, 2020, to include all 

documentation submitted for approval and all responses and related correspondence.

III. The spending report issued to OMB under section 7 of the EO. 

We also questioned CFTC employees to gain an understanding of the actions taken by the 

agency to prevent training on, and promotion of, divisive concepts. Specifically, we inquired 

regarding potential actions including: 

IV. Changes to public facing documentation or announcements 

V. Internal directives or orders on diversity and inclusion training 

VI. Standard operating procedures on approval requests for diversity and inclusion training 

VII. Changes to standard provision language in contracts 

VIII. Directives related to contract language and requirements changed to incorporate the EO

Findings

I. All contracts entered into on or after November 21, 2020. 

With regard to item I, above, there were no contracts entered into by the agency on or after 

November 21, 2020, through December 21, 2020. 
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II. All diversity and inclusion trainings approved after September 23, 2020, to 

include all documentation submitted for approval and all responses and related 

correspondence.

With regard to item II, CFTC submitted the following trainings for OPM review and approval: 

1. Hispanic Heritage Month. Her discussion is titled “Covid-19 Among Hispanic/Latinos 

from a Social Epidemiology’s Perspective.” The event also will include opening remarks 

by the CFTC Chairman.

2. Disability 101: Promoting Access and Inclusion. This training educates attendees about 

the definition of disability, models for thinking about disabilities, and ways to promote 

access and inclusion. It includes case studies for discussion.

3. EEO Complaint Process Overview. This training provides an overview of the federal 

Equal Employment Opportunity (EEO) Complaint Process. It reviews topics such as EEO 

laws, bases and issues of complaints, and best practices. The plan is to work with the 

CFTC’s Learning Officer in the Human Resources Branch to convert these Power Point 

slides into a storybook-style online training. The training will be mandatory for 

supervisors and managers.

4. MD-715 Briefing. This is the briefing that the CFTC’s Office of Minority and Women 

Inclusion (OMWI) staff provides to the Chairman, senior leaders, labor union, and the 

Diversity Council on the EEOC’s mandatory MD-715 report. It includes information on 

EEO complaints as well as the demographics of the CFTC. It is updated and edited on a 

yearly basis.

5. 2021 Black History Month. A panel discussion of Georgetown University Professor, 

Chris Brummer’s working paper: What do the Data Reveal about (the Absence of Black) 

Financial Regulators? The purpose of this panel is to discuss the preliminary findings of 

Professor Brummer’s paper and to discuss diversity at financial regulators, including the 

CFTC.

6. Fireside Chat with De’ Ana Dow. De’ Ana Dow is a prominent CFTC alum, Partner and 

General Counsel at Capital Counsel, and Chair of the network of Financial Services 

Professionals (“FSP”). The chat will cover: 

a. Background discussion of De’ Ana’s career trajectory; experience at the CFTC;

experience as a prominent derivatives lawyer and chair of the FSP; 

b. Mentoring discussion of advice De’ Ana has for AAA members on professional 

development; mentorship; navigating your careers at the CFTC; book/resource 

recommendations;

c. Discussion of the FSP and how interested AAA members can get involved; and

d. Question and Answer Session.

7. 2021 Women’s History Month Program. Current and former CFTC Commissioners will 

discuss their time at the Commission and the evolution of markets as part of a panel 

“Women in Derivatives – Reflections from CFTC Commissioners.” Potential speakers 

include: Comm. Dawn Stump, Sharon Y. Bowen, Jill E. Sommers, Sharon BrownHruska, Barbara Holum, Brooksley E. Born, Mary L. Schapiro, Shelia C. Bair, Wendy L. 

Gramm, Susan M. Philips.
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8. Women @ Work Coffee Hours. A regular series of informal conversations with women 

leaders regarding their careers, mentorship, networking, and other topics of interest to 

CFTC employees.

On December 1, 2020, OPM conveyed the results of their review of the CFTC package of 

diversity or inclusion training modules. OPM concluded, without further discussion, that all 

CFTC submissions were compliant. 

III. The spending report issued to OMB under section 7 of the EO. 

With regard to item III, CFTC was required to report all spending in Fiscal Year 2020 on Federal 

employee training programs relating to diversity or inclusion, whether conducted internally or by 

contractors. CFTC’s report was required, in addition to providing aggregate totals, to delineate 

awards to each individual contractor. CFTC submitted the required spending report to OMB on 

its due date of December 21, 2020. CFTC reported one contract:

Training Title: Leadership Skills and Techniques

Provider: Management Concepts

Cost: $9,999

IV. Changes to public facing documentation or announcements 

With regard to item 4, at CFTC the only relevant public facing documentation or announcements 

are the Management Directive 715, the Form 462 Report, and the NoFear Report. For these 

items, the CFTC follows templates that are provided by the Equal Employment Opportunity 

Commission. None of these reports were impacted by the EO and thus none of these documents 

changed. 

V. Internal directives or orders on diversity and inclusion training 

OMWI emailed Affinity Group leaders the EO and related guidance to inform them of its 

requirements. In addition, OMWI emailed all Affinity Group leaders to ensure that they checked 

in with both OMWI and the CFTC Legal Division before planning any diversity related trainings 

or events to ensure compliance with the EO. The CFTC Legal Division issued ethics guidance 

directly to Affinity group leaders regarding compliance with the EO (Attachment 1).

VI. Standard operating procedures on approval requests for diversity and inclusion 

training 

Currently, the only standard operating procedure that is in place for approval requests for all 

training is required completion of the SF-182 (which is standard throughout the federal 

government). Once the supervisor approves, it is sent to the CFTC Training Office in the 
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Division of Administration, Human Resources Branch (HRB). This process is executed through 

the online Learning Management System (LMS). LMS is managed through HRB as well. As 

CFTC is a small agency with a small training program, it has not created separate internal 

directives or standard operating procedures on approval requests for diversity and inclusion 

training. 

VII. Changes to standard provision language in contracts 

With regard to item VII, CFTC employees provided new standard contract provision language 

that quotes the EO and implements section 4 of the EO (Requirements for Government 

Contractors). The new language is: 

 ##. 52.222-99 COMBATING RACE AND SEX STEREOTYPING (DEVIATION 

CFTC-21-01) (NOV 2020)

(a) Definitions. As used in this clause—

“Race or sex scapegoating” means assigning fault, blame, or bias to a race or sex, or to 

members of a race or sex because of their race or sex. 

“Race or sex stereotyping” means ascribing character traits, values, moral and ethical 

codes, privileges, status, or beliefs to a race or sex, or to an individual because of his or 

her race or sex. 

(b) Exemptions. The exemptions that apply to Executive Order (E.O.) 11246 also apply 

to E.O. 13950. See FAR 22.807. 

(c) Compliance with E. O. 13950, Combating Race and Sex Stereotyping. Unless 

exempted under paragraph (b) of this clause, the Contractor shall not use any workplace

training that inculcates in its employees any form of race or sex stereotyping or any form 

of race or sex scapegoating, including the concepts that—

(1) One race or sex is inherently superior to another race or sex; 

(2) An individual, by virtue of his or her race or sex, is inherently racist, sexist, or 

oppressive, whether consciously or unconsciously; 

(3) An individual should be discriminated against or receive adverse treatment solely or 

partly because of his or her race or sex; 
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(4) Members of one race or sex cannot and should not attempt to treat others without 

respect to race or sex; 

(5) An individual’s moral character is necessarily determined by his or her race or sex; 

(6) An individual, by virtue of his or her race or sex, bears responsibility for actions 

committed in the past by other members of the same race or sex; 

(7) Any individual should feel discomfort, guilt, anguish, or any other form of 

psychological distress on account of his or her race or sex; or 

(8) Meritocracy or traits such as a hard work ethic are racist or sexist, or were created by 

a particular race to oppress another race.

(d) Notice. The Contractor shall send, to each labor union or representative of workers 

with which it has a collective bargaining agreement or other contract or understanding, 

the notice provided below advising the labor union or workers’ representative of the 

Contractor’s commitments under this clause, and post copies of the notice in conspicuous 

places available to employees and applicants for employment.

NOTICE

E.O. 13950, Combating Race and Sex Stereotyping

Employers Holding Federal Contracts or Subcontracts

Contractors shall not use any workplace training that inculcates in its employees any form 

of race or sex stereotyping or any form of race or sex scapegoating, including the following 

concepts that—

(1) One race or sex is inherently superior to another race or sex; 

(2) An individual, by virtue of his or her race or sex, is inherently racist, sexist, or 

oppressive, whether consciously or unconsciously; 

(3) An individual should be discriminated against or receive adverse treatment solely 

or partly because of his or her race or sex; 

(4) Members of one race or sex cannot and should not attempt to treat others without 

respect to race or sex; 

(5) An individual’s moral character is necessarily determined by his or her race or 

sex; 
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(6) An individual, by virtue of his or her race or sex, bears responsibility for actions 

committed in the past by other members of the same race or sex; 

(7) Any individual should feel discomfort, guilt, anguish, or any other form of 

psychological distress on account of his or her race or sex; or 

(8) Meritocracy or traits such as a hard work ethic are racist or sexist, or were created 

by a particular race to oppress another race. 

For use in this notice, the terms—

“Race or sex scapegoating” means assigning fault, blame, or bias to a race or sex, or 

to members of a race or sex because of their race or sex; and 

“Race or sex stereotyping” means ascribing character traits, values, moral and ethical 

codes, privileges, status, or beliefs to a race or sex, or to an individual because of his or her 

race or sex. 

Any person who believes a contractor has violated its nondiscrimination or affirmative 

action obligations under this notice should immediately contact the Office of Federal 

Contract Compliance Programs (OFCCP) Complaint Hotline to Combat Race and Sex 

Stereotyping at 202-343-2008 or via email at OFCCPComplaintHotline@dol.gov. 

(End of notice)

(e) Noncompliance. If the Department of Labor’s Office of Federal Contract Compliance 

Programs (OFCCP) determines that the Contractor is not in compliance with this clause or 

any rule, regulation, or order of the Secretary of Labor, this contract may be canceled, 

terminated, or suspended in whole or in part and the Contractor may be declared ineligible 

for further Government contracts, under the procedures authorized in E. O. 11246, as 

amended. In addition, sanctions may be imposed and remedies invoked against the 

Contractor as provided in E. O. 11246, as amended; in the rules, regulations, and orders of 

the Secretary of Labor; or as otherwise provided by law. 

(f) Subcontracts. (1) The Contractor shall include the substance of this clause, including 

this paragraph (f), in all subcontracts that exceed $10,000 and are not exempted by the 

rules, regulations, or orders of the Secretary of Labor issued under E.O. 11246 and E.O. 

13950, as amended, so that these terms and conditions of this clause will be binding upon 

each subcontractor. 

(2) The Contractor shall take such action with respect to any subcontract as the Director of 

OFCCP may direct as a means of enforcing these terms and conditions, including sanctions 

for noncompliance, provided, that if the Contractor becomes involved in, or is threatened 

with, litigation with a subcontractor as a result of any direction, the Contractor may request 

the United States to enter into the litigation to protect the interests of the United States.
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VIII. Directives related to contract language and requirements changed to incorporate 

the EO 

With regard to item VIII., on November 23, 2020, all CFTC Contracting Officers and Purchasing 

Agents were provided new directives that quote the EO and implement section 4 of the EO 

(Requirements for Government Contractors). The directive is attached (Attachment 2). 

Management Draft

The I&E Standards recommend but do not require that agency management be given the 

opportunity to comment on I&E reports prior to issuance. The CIGIE draft guidelines for this 

project state that the agency should have the opportunity to review and comment on the draft 

report; however, “[g]iven the required, limited timeframe, the normal commenting period may 

need to be shortened to expedite the process.” CIGIE also recognizes that any evaluation of 

agency compliance with the December 21, 2020, deadline to submit a spending report to OMB 

(EO section 7) may present some timing issues. We submitted our management draft to Summer 

Mersinger, the designated “Senior political appointee” under section 2(d) of the EO, on 

December 29, 2020. Management responded with their approval and agreement by email on 

January 4, 2021. 

Reporting

The final report is being furnished to the Commission and to OMB. As with all 

Inspection/Evaluation reports, the Inspector General Act of 1978, as amended, will require its 

publication to the OIG webpage (5 USC Appx. § 8M). 

Conclusion

CFTC is in compliance with the EO. 

Cc: Jaime Klima, Chief of Staff 

Peter Kals, Special Counsel

David Gillers, Chief of Staff

Daniel J. Bucsa, Chief of Staff 

Erik F. Remmler, Chief of Staff 

Anthony C. Thompson, Executive Director and Chief Administrative Officer

Dan Davis, General Counsel

A. Roy Lavik, Inspector General 
ATTACHMENT 1

AFFINITY GROUP ETHICS GUIDANCE
ATTACHMENT 1

AFFINITY GROUP ETHICS GUIDANCE

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ATTACHMENT 2

THE DIRECTIVE

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ATTACHMENT 2

THE DIRECTIVE

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ATTACHMENT 2

THE DIRECTIVE

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ATTACHMENT 2

THE DIRECTIVE

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ATTACHMENT 2

THE DIRECTIVE

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