A cry for help

More and more industry representatives are complaining about the politicisation of the rule-making process in financial markets. In Europe, politicisation has triggered some absurd episodes, such as the proposal for the greatest uncontrolled financial market microstructure experiment in the world (aka the minimum resting period of 500 ms) and the introduction of short selling bans in the face of an overwhelmingly crushing academic verdict against them.

Do politicians really have the long-term interest of Europe at heart, or are they more concerned about vote-winning headlines?

Regulators usually have extensive first-hand experience in financial markets and they are less restricted by election cycles. So the recent open letter from representatives of the FOA and a number of global derivatives exchanges, proposing to install IOSCO as the key institution driving global regulatory recognition forward, reads like a cry for help! The industry wants regulators to reclaim the driving seat in the rule-making process on extraterritoriality agreements.

The stakes are extremely high, as painfully highlighted by CFTC Commissioner Scott O’Malia in his recent speech. The CFTC is drowning in data, with computers continuously crashing. Such is the extent of the problem, you wonder if the Commission could have spotted the “London whale” even if it had beached on the banks of the Potomac River.

Leave A Comment

Copyright © 2017 Fidessa group plc. All rights reserved.

The information contained within this website is provided for informational purposes only. Fidessa will use reasonable care to ensure that information is accurate at the time it is made available, and for the duration that it remains on the site. The information may be changed by Fidessa at any time without notice. We also reserve the right to close the website at any time. No representation or warranty, expressed or implied, is given on behalf of Fidessa or any of its respective directors, employees, agents, or advisers as to the accuracy or completeness of the information or opinions contained herein or its suitability for any purpose and, save in the case of fraud, all liability for direct, indirect, special, consequential or other loss or damages of whatever kind that may arise from use of the website is hereby excluded to the fullest extent permitted by law. Any decisions you make based on the information in this website are your sole responsibility and information on the website should not be relied upon in connection with any investment decision.

The copyright of this website belongs to Fidessa. All other intellectual property rights are reserved.

Reproduction or redistribution of this information is prohibited except with written permission from Fidessa.