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Important anniversary today three years since the passage of -- frank.
With a lot has not been fully implemented and -- after his next guest says may be years before it is Charlie Gasparino is here with this.
Scary note we bring you into -- it.
SEC commissioner -- we get into dot -- like just ask you what -- an SEC commissioner do we kind of they were granted there's a commission there's a chairwoman Mary Jo White now he had had a boss.
And has all you guys in between what do you do you know all all four of us other -- -- -- in a nutshell Charlie -- vote.
We vote on all matters that come up and -- the commission whether -- be the rule makings.
Like folks all last week on the money market fund rule making or whether it's the enforcement cases which we vote on every week I think -- -- like SEC capital or something like that well I can't talk about any specific cases Charlie but -- we vote on every knew I was gonna look that up and -- No comment okay you've got it.
I think it's a good case to be made that the market is somewhat screwed up right now we have outages in the Euronext exchange last week we -- these dark pools we -- trade stocks wolf the exchange.
One thing I actually worry about those DS is the case -- SEC paying enough attention to this and we see a lot of other stuff money market rules but the basis of stock trading.
Are these markets and a lot of people like Dick -- was where it was on our air last Friday.
Saying that he doesn't think the price of apple is actually the price of apple because there -- so many of these other markets out there.
That's right well it's a huge concern for us because things like.
Grasso we're talking about go to investor confidence if investors are confident that they're getting the right price but when we've got a problem on our hands at the SEC and you do to your specific question I think a lot of attention has been paid since -- sick since the flash crash right but it's been in slices and it hasn't been sort of a comprehensive.
Review of our market structure whether things are working but will their -- is Mary Jo -- committed to it well I think she still trying to figure out what the -- is going to be and so a different time to figure figure that out but I think.
Most folks agree that it's time for the SEC take a state stepped back to get deep breath.
Right and do a comprehensive holistic review of market structure -- a lot of talk about Dodd-Frank you've been very vocal on the financials and we ran a piece last week.
Where you said yeah it's gonna take years to implement absolutely what is why is that and know exactly what does that mean people don't understand truly the metrics at play here 400 rule makings and Dodd-Frank mandated to me like he's the -- got a hundred more than any other agency.
-- of those hundred worth 38% of the way through.
Right so we've got a long way to go and folks think -- especially coming out an election year right there was a debate about Don Franken Wall Street when they're SpinRite and thinking that well yet been -- in Dodd-Frank three years ago reined it in the Dodd-Frank was largely just a series mandates to regulators like the SEC.
And as I said 38% of the way we're years.
Years from we're talking maybe three years went.
I you know it depends on again the agenda of the priorities nation because part of the problem is.
Some of these things and operate a lot of them have nothing to do with the financial crisis there based on false narrative about the crisis and you know if you ask me.
I mean I recognize it's the law of the land we have to do these things but we should also prioritize our day job -- prioritize equity market structure we should.
Other things that are important to investors in the market site like one thing would be the vocal role we should point out Paul Volcker the the author of several former.
Chairman of the Fed came out and said listen and he's a presence economic -- listen.
This thing's going to be implemented in June we're gonna know whether you know where these sort of four boundaries are.
About proprietary trading expand and what's not been some people think proprietary trading.
Is like everything including market making -- we know in June I guess this month what the vocal rule really means now.
There's not a drug -- and notes it is June and we're not gonna know in June I don't know what it's gonna look like we're waiting.
For the staff to put together and a viable.
Final rule making I've called publicly several times and my colleague -- Brady -- -- for this rule to be re proposed -- Political -- Volcker -- one of the problems is with Dodd-Frank in a rush.
To get these proposals out right a lot of the work wasn't really about the ultimate -- we expect all schools -- a -- and risk taking proprietary trading.
Firms using their balance sheet to trade stocks and bonds.
But it's sort of broadest interpretation it could mean the practice of you buying you a bank -- securities for your clients make -- a market which is what the markets is supposed to be.
Okay so in the absence of a clearly written Volcker Rule right now what do firms doing -- just making it up though truth be told since the statue went into effect a lot of the big firms have shut down what we call the pure prop bets yet that's those are gone.
I think that's what folks were really after in the for a -- so so there should be some satisfaction.
-- by the lawmakers by the policy makers that the team does thrust of this rule has been met but there's gray areas in this sort and -- more then what -- doing in those in the afternoon they're waiting to see what we can always been in particular I think you're getting at the definition market making hugely important issue.
For liquidity in our markets and there's no morals and -- can't make it there's -- -- still on the price discovery will never be able to get to buy and sell a thousand shares of IBM.
As a retail customer if there's no market makers -- -- we have to be very careful.
Problem is and I said this publicly many times.
The bank regulators have taken the lead.
On these issues that are inherently it -- yes he sister and a clear here at the firms are making it up.
Right now with market making right heart -- mind can I make -- in my age overstating that that the firms are you know issuing I think to traditional notions of a market making -- -- for the definition to come out from the SEC and the banking agencies is that.
Years away as well.
Not probably not years given the political pressure and everything else but certainly -- is not June.
It's not -- we don't Christian right now I hear if you and then I got a trophy I'm -- that's right out of bed out of bed trade off.
I'd ask you about insider trading now I know he can't comment on cases as opinion -- reporter I got to ask could -- you could say no comment.
I'm not I'm on top of that -- I would like mom I just wonder if it's.
Too big of a regulatory priorities you have a lot of stuff going on I'm write a book about insider trading when -- the best.
If force things is I ever met the son.
But I just wonder whether it's on day one was time and efforts in an intellect could have been used.
Breaking up scams where there's direct rip offs going on and that -- -- an agency arm are some of elevating something that okay.
There's a fight for not insider trading you're gonna buy this stock you don't buy it anyway you made a bad decision if the victim the victim -- it's it's somewhat of a victimless crime -- Yet again and look and -- if you believe the efficient market theory it's it's somewhat victim was but I'll tell -- again this goes back to your earlier comment about.
Cross I think this goes to confidence in the markets right if people feel like they're not getting a fair shake someone else is -- right at a price.
They don't gonna come to the markets and right now you know the volumes on the equity markets are.
Are down -- something we need to be concerned about so bringing these insider trading cases shows that the SEC is the cop on the beat I do think that helps confidence.
And and things like priorities that you should be is the priority it is well and I think you know sometimes people confuse right cases like the big -- on -- bringing medallion case and things like that.
It's not necessarily a priority you can't say I'm going to go finding valiant try but once you find that you spend years unraveling -- and we've got a great team that does it.
And it's hard to argue against some of the smaller cases people say why do you burn -- 101000 dollar -- -- changes I'll have that debate with you.
Mission we should we be focusing on a boiler room instead -- Ponzi scheme the polygraphs absolutely I'm with you -- where the average retail investor loses their money.
Where they had you know retiree has to go back to work Charlie it should be all of that while I'm gonna wrap you on that that's a perfect way to end this segment guys back thanks -- -- and --
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