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Good morning Chairman Reed, Ranking Member Bunning and members of the Subcommittee. I thank you for inviting me to today’s hearing on the unusual volatility in the capital markets on May 6, 2010. I am pleased to testify alongside Securities and Exchange Commission (SEC) Chairman Mary Schapiro.
Staff of the Commodity Futures Trading Commission (CFTC) and SEC released a joint report on Tuesday that presented their preliminary findings regarding May 6’s market events. I wish to thank the staffs of both agencies and compliment their dedication for working tirelessly and cooperatively to issue this detailed report in such short order. I will touch on some of those findings in my testimony today. The two agencies also announced last week the creation of a Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues that will take as its first project reviewing and analyzing the market events of May 6.
Those market events had significant implications for the investing public and American businesses. It is essential that we continue our review of the contributing circumstances of the price volatility and provide recommendations to promote the integrity of our markets. More work must be done to accomplish this goal. It is central to our mission that markets are fair, orderly and transparent.
I will focus my testimony this morning primarily on issues related to the futures marketplace and leave Chairman Schapiro to address the securities markets.
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