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SPEECHES & TESTIMONY

  • Opening Statement of Chairman Gary Gensler before the Second Meeting of the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues

    June 22, 2010

    Good morning. I am pleased to join Chairman Schapiro in welcoming the members of the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues to our second meeting. I would like to thank Chairman Schapiro for her efforts both at the SEC and in our ongoing review of the unusual market events that took place on May 6, 2010.

    I also would like to thank the staff of the CFTC and SEC for all of their hard work planning this meeting and reviewing the circumstances surrounding May 6.

    I also want to recognize and thank my fellow CFTC Commissioners, Mike Dunn, Jill Sommers, Bart Chilton and Scott O’Malia.

    On May 6, we witnessed market events that had significant implications for the investing public and American businesses. The CFTC, SEC and this joint committee will continue our review of the contributing circumstances of the price volatility and provide recommendations to promote the integrity of our markets. It is central to our mission that markets are fair, orderly and transparent.

    On May 24, this committee met to hear the preliminary findings of the staffs of the CFTC and SEC.

    Today, the joint committee will hear from diverse participants on two panels. The first panel will provide views from seven representatives from both futures and securities exchanges. I look forward to hearing panelists’ views on various exchange rules, such as pauses, slow modes and circuit breakers. How should CFTC rules, SEC rules or exchange rules be updated to protect against such high levels of volatility in the future?

    The second will provide views from other market participants, including high-frequency and algorithmic traders. I am particular interested in hearing the panelists’ views on high-frequency and algorithmic trading. What role did this type of trading play in the events of May 6? What type of liquidity does algorithmic and high-frequency trading bring to the marketplace? Should there be unique rules and safeguards relating to high frequency and algorithmic trading?

    I look forward to an informative dialogue with each of today’s panelists. I am hopeful that today’s meeting, as well as a meeting next month and continued communication amongst committee members, will help provide thoughtful analysis on the unusual market events of May 6.

    I again thank both the CFTC and the SEC, staff and our panelists for being here today.

    Last Updated: June 22, 2010



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