An under-funded CFTC? (FTSE Global Markets)

By | March 28, 2011

Apparently FTSE thought I had something interesting to say on this topic, as they put my picture front and center in this article (not that I’m complaining).  Magazine layout aside, as the CFTC has pumped out rule proposals through the fall and winter, the industry has told them to slow down and the CFTC is now saying they can never get it all done by the deadline in July 2011 even if they wanted to.  Part of this falls on “you can’t rush a good thing”.  The best rules would be ones created from a slow and steady approach.  But the real problem here is the CFTC just has no money.  No money means not enough people and (as Commissioner O’Malia has pointed out a lot lately) not enough technology.

TABB Group’s Kevin McPartland is in sympathy with Dunn’s worldview.“From a technology perspective, there is an astronomical amount of very complicated data needed to identify systemic risk and on top of that you need to check the balance sheets of all these massively complex organisations. Not only do they lack the technology needed, but also they do not have the budget to create it.”

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