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Tag Archives: CFTC

Glorious sunlight…

It’s so refreshing to see this lovely video of Senator Blanche Lincoln talk about her derivatives reform legislation… here is her draft… Somehow I sense the hand of CFTC Chairman Gensler in this process… and the spirit of House Agriculture Chairman Collin Peterson… yes… substantive forces to rein in Wall Street on derivatives are at […]

The more transparent a marketplace, the more liquid it is, the more competitive it is

Transparency creates stability in financial markets… this is a foundational precept of our system but is rarely argued… the following is from a speech by CFTC Chairman Gensler to the “Energy Bar Association” on February 24th… ~~~ Transparent Trading Requirement “… It is not enough, though, simply to promote transparency to the regulators. Financial reform […]

“The markets are becoming risky again, bankers are becoming risk-takers again,”

The efforts of global political officials to rein in the global banking elites are falling flat… President Obama held a meeting of Wall Street bankers at the White House and heads of several of the biggest banks pardoned their absence with weak excuses … Gordon Brown and Alistair Darling of the UK imposed a “banker bonus” tax […]

The bounds of derivatives regulation

The derivatives legislation adopted by the House of Representatives is a landmark… here is how Barney Franks’ staff describes the legislation: Overview Over-the-counter derivatives legislation for the first time addresses an unregulated part of the financial markets that poses a potential risk to the broader economy. This risk was more than apparent last year when […]

German brilliance in making the law clear…

If we want market participants to follow the law we should expose the rules and law in a way that makes it more accessible…. we can follow the excellent example of the German securities regulator Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) who has an excellent search tool that allows users to… Search supervisory legislation The supervisory legislation search function […]

Transparency explosion…

This is great news from the CFTC… they  are disseminating more data that is collected on groups that trade futures and commodities… This new transparency is the  exposure of  the “Concentration of Trader” (COT) reports in specific markets that they oversee… this will help reveal the concentration of speculators versus end users… It would be interesting to […]

`Fundamental Questions’ on Derivatives Plan

Hal Scott, a Harvard Law School professor and director of the Committee on Capital Markets Regulation, talks with Bloomberg’s Margaret Brennan about Treasury Secretary Tim Geithner’s plan to overhaul the financial regulatory system. Geithner was on Capitol Hill today to discuss proposals to revamp the way derivatives are regulated. He said the U.S. should require […]

Harmonizing…

The SEC and CFTC held a joint meeting today on harmonizing dervicatives regulation between the two agencies. This effort is mandated by Congress and follows on the memorandum of understanding signed last year by the agencies. Very arcane and interesting meeting … the issues covered are the “devils in the details”. It had the feeling […]

The silent CDS wreckage

The aftermath of the Credit Panic of 2007-2009 includes the destruction of large swaths of the global financial system. Good riddance to excessive leverage, the structured finance market and the shadow banking system… you brought us nothing and left us with an expensive pile of too-big-too-fail wreckage… A war to establish the contours of the […]

MOU…

Excellent progress today on the CDS front… From BBG:  ~~~~ “The Fed, Commodity Futures Trading Commission and Securities and Exchange Commission signed memorandum of understanding (MOU) today that they said will provide consistent oversight of the clearinghouses and the credit-default swap market. The group laid out guidelines they said would provide more public information on […]