October 1, 2010
Remember that great old Chicago song “Beginnings” with the line "Only the beginning, only just the start?”
I don't know how many of you recall that song by Chicago but it was a super song -- back in 1969, and still is, if you listen to it. Well, today is only the beginning to making markets more efficient and effective and devoid of fraud abuse and manipulation.
As we all know, there will soon be a joint staff report on the Flash Crash. One of the things we have learned is the cohesive interconnectedness of these markets -- all U. S. financial markets. We are working more closely than ever with our colleagues at the SEC and at other sister regulatory agencies to harmonize, to the extent which makes sense, rules, regulations, and procedures. Changes that are being made as a result of the Flash Crash are important and imperative. That said, they are band aids compared to the significant structural changes that the Wall Street Reform law envisions.
Although we have been working hard for months on the new law, today is the public beginning to the rule writing part of that work.
Make no mistake, this won't be easy. We have dozens of rules to write and our job of regulating and enforcing these markets will be huge. Congress gave regulators the responsibility to implement the law. But on this first day of the new fiscal year, Congress is going home having passed a continuing resolution with level funding. We need to have the people power and the computer capability to institute the changes Congress itself sought. It would be nice, after getting the definitive word on the Flash Crash, to know we are going forward with confidence and clarity to ensure markets are sound. Only if Congress approves funding to implement these changes are we able to do that.
So, this is only the beginning, only just the start of what we have to do and I look forward to doing it.
Last Updated: October 1, 2010