ISE Proposal for Financial Market Reform

The International Securities Exchange (ISE) has issued a proposal for reform to the the U.S. securities markets. The proposal is based on the premise that there are currently significant overlapping areas and regulatory gaps between the Securities Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).

They are proposing a new risk-based framework that includes 3 components:

  • Financial Systemic Risk: financial and capital matters involving commercial and investment banks, as well as futures commission merchants, investment companies and hedge funds.
  • Disclosure: disclosure/risk analysis for investors, which would cover corporate issuers, investment companies, and product-specific risk.
  • Financial Industry Operations: operation of financial markets, trading platforms and financial service providers, including but not limited to the services traditionally provided by brokerdealers,┬áinvestment advisors, hedge funds and futures commission merchants.

To execute this framework, there would be a new U.S. Financial Markets Commission (FMC) that oversees all activities. A transitional authority would be set up for 18 months to facilitate the merger.

See the full proposal at: http://ise.com/regulatoryreform/

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One Response

  1. Sure, there is room for improved oversight in the securities and commodities markets. That is not THE WORLD COMMANDING HEIGHT. The world commanding height is the system that controlls the money supply. The future of globalization is rooted in who controlls the amount of money in circulation. What the US does in respect to their central bank (more power/less power) is a good indicator of how we will proceed in globalization: will be be a world democracy of nations? Or proceed in service of our money supply?
    (US Gov’t is currently rolling over and playing dead)
    What does it mean when the top Democratic money official for the US Govenment wants to turn over more power to a private entity with poor oversight and lacking in transparency… to further controll the US money supply…(the world reserve currency) ?

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