The Merger of SEC and CFTC

With the merger of SEC and CFTC, the Fed will control more of SEC regulation which is less "Independence" and "Integrity" in the system.

As is, SEC is not doing the proper job exercising "due diligence" to oversea the financial system as we have recently seen "naked shorts" going out of control. If the "SEC" does or did "its job" of controlling the financial system, then, we would now have better economy and we would not need new "SWAT" team. Since "SEC" wasn't given enough power or greater role to oversea the financial system operation, SEC wasn't able to perform what the entity was meant to do. We now have direct hotlines among the Fed, the Treasury dept, and financial institutions.

If the Fed takes away more of "SEC" responsibility, then, it would greatly minimize "INTEGRITY" of the system which would be a collateral damage for promoting financial stability. Nevertheless, SEC primary responsibility of "Independence" and "Regulatory" role does not necessarily have to be lessened if that is not the Fed intention.

Considering the global scope of the trading and financial fund flow, we need more centralized regulatory system for effective and efficient controls which could monitor financial market activities. Hence, one of the FED, SEC, FBI or CIA has to have greater power to control the new global financial market system. So, which one would be the one? The Fed would not give more power to "SEC" which seems to be the most sensible choice. However, the Fed will not assign more power to "SEC".


The proposal would merge the S.E.C. with the Commodity Futures Trading Commission, which regulates exchange-traded futures for oil, grains, currencies and the like.

http://www.forbes.com/2008/03/27/cme-margins-increase-market-comm-cx_md-0327markets10.html?partner=yahootix

CME Acts Against Speculators
Maurna Desmond, 03.27.08, 1:40 PM ET


The Chicago Mercantile Exchange responded to the wild upward swing of commodities in recent months by raising margin requirements on Thursday, forcing speculators to put more skin in the game.

On Thursday, CME Group (nyse: CME - news - people ) told Forbes.com it was raising the initial amount of capital that investors had to post in order to trade futures on corn, soybeans and soybean oil. Raising commodities margins would deter speculation and possibly slow the price rises that have been affecting grains in recent months.