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My next guest says he's calling the industry reckless proposing a solution to prevent this from happening again.
Bart Chilton as a commissioner of the -- commodities future trading commission one of the biggest regulators in Washington.
What do you -- -- -- I thought this was.
Bad news I have to say I know a lot of people defended it but at the end of the day in the markets need to be open.
Yeah out there that's right and you hate to have these conversations about people moving money around Jerry when.
You know there's a loss of life and property the you've been covering and we all feel for that but.
But -- my jobs to look at markets and in the post 9/11 world it just seems to me that we have to have plans in place.
To listen to assume that the worst this this storm did not sneak up on us we knew it was coming.
And you really should just these flicking a switch and then it goes to a remote site and you could continue trading obviously nobody can be at New York Stock Exchange but electronic -- They said they were gonna do that after 9/11 what happens.
What they do what they did is remembered field a dream for they say if you build it they will come.
Well what happened here is the New York Stock Exchange built it.
But the traders didn't come they didn't do all the testing to make sure so they had the rain slickers they have their blushes but they didn't try it on.
Did they have an actual location not in Manhattan.
It's it's still in Manhattan but it's it's it it should be because these things I think should be more remote.
Because you don't want anybody going into harm's way during one of these things.
But the -- I'm concerned about it is it isn't just what's trading in the equities.
These things these are global markets are -- so than the futures markets on financial futures of course.
They get shut down in Chicago and people -- impacted in London and Shanghai it's just a mess and we need to do better let's back up five steps and tell people why it's important for the markets the F.
These markets absolutely are that Greece that is runs the economic engine of our democracy and when you've got orders in and we knew we don't know where your money is and it's held up for days.
The markets and other places around the world are continuing to trade -- in limbo you're scared you're in jeopardy want people trust the markets have -- open helps you to trust them.
We've got so many examples in the financial sector with problems with this or that whether or not -- Barkley user MF global -- Now -- -- banks doing things the last thing we need is that it -- put into the mix a concern about exchanges.
-- -- We're moving into a different topic you mentioned just did you sat down here.
CFTC organization your regulatory agency had suggested position limits for traders now the reason this is important.
Is because of the flash crash yes traders have been.
Can I think just running amok there'd been major problems with traders stopping the show having big big losses that affect all the markets.
The CFTC tried to stop that would happen.
We did what we put -- -- a rule and we are mandated to do this by Dodd-Frank coming you can.
People to say whatever they want about Dodd-Frank this is something that I think a lot of people support -- -- as you put a cap on the amount of concentration.
That any one trader can hold in a market.
-- seen trader told thirty.
More percent in different markets like -- crude oil and natural -- and obviously you sell that a one time you can push markets -- Congress had put a cap on it.
We did and just days before we -- gonna implement it in October.
A judge -- our case out throughout through a case out that the financial speculators had taken against us.
So today we are appealing that decision it just happened literally maybe an hour and a half ago and talked about it yet I'm pleased to be on your show to do it.
I think this sends a message of hope it sends a message.
That regulators aren't going to be pushed around with the biggest speculators in the world who have deep pockets and think they can just litigate us to death we're gonna go after them.
This is about consumers you talk about them into them every single day this is about ensuring that they pay a fair price.
That's not doesn't have a speculative premium for just about everything they ultimately purchase its.
Its prices but it's also confidence -- what's been going on -- marketplace has really attacked consumer confidence in the markets.
Eat eat eat and I believe -- right now 10% of people in a recent survey say they had confidence in the stock markets that's not good we need people investing not sitting on their hands.
Glad I didn't hear the -- Aurora from traders all over the country saying this you know what is -- doing that's not fair.
What kind of limits re putting in place and where they onerous.
They were 10%.
You couldn't control temperate Morgan 10% -- market we actually received thirteen thousand comments Jerry.
And there's only a handful I mean thirty or forty out of thirteen thousand.
That said 10% of the market was too low you needed to control more so it really is the concept of being able to have limits that most of them most of the traders the big banks -- -- didn't like.
But we got thousands of letters from individuals.
Little guys who said you need you need limits the markets are being pushed around at times not all the time.
By these large -- that hold massive -- Well I've got to tell you I know a lot of people are concerned about the -- individual investors -- -- -- home staying put not investing.
The interesting to see how works out -- have come back and tell us how how your countersued I guess -- works at this point thank you thank each year.