Timothy Massad, chairman of the CFTC, was asked yesterday at the FIA Expo what the biggest macro challenge was for the regulator.
“Our goal as a regulator had to be to create framework where the industry can continue to innovate and grow,” he said. “We are obligated to be looking back and addressing problems of past, but the challenge is how to do that in a way that permits continued innovation and growth. It is important for regulators to have the goal in mind that we should create a framework that allows for natural growth and innovation of the industry to occur.”
He used SEF trading as an example.
“We want to create a platform with SEF trading where we are not just meeting the goals of transparency but also creating a marketplace where people want to trade. I think we will get there.”
It will require greater harmonization across borders, he added.
As CFTC commissioners have regularly told the FIA, the commission’s budget is too small for all the work it has assigned to it.
“We could be moving faster if we had more money. We have two dozen SEF registrations [awaiting review] and I would like to be done with those a lot faster. We should also be doing more examinations of cyber security at clearing houses.”
