The Commodity Futures Trading Commission ’s (CFTC) new kid on the block, Commissioner Bart Chilton, wants the agency to “get down to brass tacks.” Chilton set some lofty goals (well, lofty for the slow-moving CFTC, anyway) this morning at the Futures Industry Association’s (FIA) annual expo. But other members of the panel want to see a lot less talk and a lot more action from the CFTC.
Commissioner Chilton, who was sworn in last August, took a firm stance on fixing the CFTC’s actions –or rather inactions – of late. “We have the responsibility to look at what we’re not doing right…they’re not huge issues. We just need to get down to brass tacks and finalize these things,” Chilton said.
The panelists discussed exclusive jurisdiction in the energy markets in relation to the CFTC and Federal Energy Regulatory Commission’s (FERC) ongoing legal scuffle with Amaranth, as well as a possible merger between the CFTC and Securities and Exchange Commission (SEC).
William Brodsky, chairman and CEO of the Chicago Board Options Exchange, felt that merger talk was just the tip of the iceberg in futures regulation, saying, “We need a fresh look at the whole thing…this goes way beyond the concept of a merger.”
On FERC and CFTC’s skirmish over energy regulation, FIA President John Damgard said, “FERC is sticking their nose into a process that was working well without them.”
Chilton called for a Memorandum of Understanding (MOU) to be set up for new product approval, and said periodic and public accountability sessions with the SEC and CFTC are needed. “We don’t need to trouble Congress to solve these problems. We can solve them on our own.”
Brodsky called Chilton’s comments “refreshing,” but remained a bit skeptical about the CFTC’s ability to accomplish Chilton’s stated goals. “Good words and nice intensions have not solved [the CFTC’s] problems” in the past, Brodsky said. “I’m impatient because there’s lots of good will but very little action.”
Maybe Chilton can help the CFTC take a cue from Elvis and offer up a little less conversation, and a little more action.
-submitted by Christine Birkner