CBOT Calls For Streamlined CFTC Oversight At Roundtable

The Chicago Board of Trade called for a more forward-thinking and market-based regulatory structure for futures trading today at an industry roundtable at the Commodity Futures Trading Commission. At the CFTC meeting called by CFTC Chairman William Rainer, the CBOT said regulators must balance the twin goals of appropriate regulation and fair competition. The CBOT said exchanges now operate in a world where technology and the sophistication of most market participants have combined to allow traditional CFTC regulation to be easily side-stepped in over-the-counter markets. CBOT Chairman David P. Brennan, who participated in the roundtable, said, "If no regulation is needed for our competitors, what regulation is appropriate for us? The simple and fair answer is 'none.' That would put traditional exchanges and new markets on the same footing. No one could complain about regulatory arbitrage or unfair competition. The best market with the best products would win out in the marketplace." CBOT President and CEO Thomas R. Donovan, also participating in the roundtable, said, "Every regulatory system needs credibility. A system has no credibility if it is easily evaded. To be credible, the CFTC, and ultimately the President's Working Group and Congress, must find a regulatory equilibrium where all competitors face the same kinds of regulation. And that regulation must fit tomorrow's markets, not those of today, last year or the last decade."