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Evolution in both technology and trading -- markets need tighter restrictions.
A lot tighter.
Our next guest thinks so joining us now is Delaware senator Ted Kaufmann senator thank you for being in here.
-- much of the talk and may be additional regulations focused on dark pools Qwikster trading venues.
Operated by firms like Credit -- that don't display -- to the public and it all sounds very spooky and bad but what is that evidence.
That -- evolution in trading are bad and hurt all investor.
It I think it's a good pars today and I think that the key thing is that one of the basic.
Principles and everything we have to do in terms of markets and why they established the SEC and MS is that.
We've got to have transparency of what's gone on and it has to be fair.
And while dark pools and high previously -- other help liquidity and I am all for helping query.
It cannot it's got to be -- parents got to be there.
And right now articles make up somewhere between 712% all the markets.
There's that we went from two markets senators' top fifty.
So I'm not saying that what prescription -- and what regulation -- what I'm saying is we have to take a hard look out.
And fortunately the this Thursday's commission I sent Mary -- -- -- along better just face and saying.
Let's review of these things in my at a massive changes taking place they're gonna do that I was very pleased that Jack Reed yesterday in the chairman reed of this series me right testified -- -- So they're gonna look at this thing -- very pleased to senator Schumer from New York talked about -- surveillance.
Of all -- that's really where we're gone I don't think anybody is the stage to say.
You know too much specific about what regulation we need to how much we need but we do need to look at these things is very important a lot of changes in market.
There have been senators Brian Sullivan do you think of the equity markets or hedge funds or dark pools or whatever do you believe that.
There is a systemic risk around stocks.
Absolutely absolutely I believe that's about -- -- being we really haven't changed anything.
So that's coming down as you know Bryan you and I talked about.
The fact that you can still do naked short selling where people don't control the don't have shares they can sell shares without him in the suspicions that some of the things go on.
But high frequency trading in dark pools are short sales.
Without holding the stocks of those things and on this absolutely as a as a systemic problem.
That we have to look out more cars because as as as you know -- and -- -- -- now this is basically this whole regulatory scheme is based on.
-- trading as opposed the visualization and -- nation came along -- very much think 70% of market trading house partners and traders.
Massive changes we don't know what's going on and Brian that's always been a prescription for disaster from the past we don't know what's going on there's been massive changes we don't have transparency.
Usually don't have fairness and we usually have disaster.
Senator however -- regulator is and no personal offense lawmakers always be playing catch up.
To the private sector to the financial industry just simply because of you can make more money on Wall Street -- right hand work in and Washington.
Well I'm not -- Today and I hate that fits that challenged the popular myth but I've worked in private sector -- -- for right to corporations -- -- -- ten years there's a really bright incredibly.
As talented people down here working for the securities exchange commission for the Department of Justice.
Many people come out of college come out -- law school and say I really want to make a difference.
And -- way to make a difference is to come down here marketing thanks to we have good people -- we get even better people that situation makes some people.
Make -- -- really really important to him.
But down here Washington most of the people here because they really -- -- make a difference and they are every bit as qualified everybody's Smart every bit as good as the people.
Who are up there almost behind Iowa and and day from work I know a lot of -- work on Wall Street.
And a very very bright they act anymore right in the people down here.
Senator should all derivative products be traded.
On an exchange some of your colleagues in the house even in the Democratic Party have suggested that OTC trading over the counter trading is -- right -- for certain derivatives right.
Why don't I think that's something have to look at not Brian to be beyond what I like to do is talk about some minus some about it not talk about some I don't know something about.
And really it sounds to me that can make some good arguments that maybe we have to look at this could get back today against point and your point -- Any time we create a crack.
Even the slightest crack in what we're doing the regulation of the control these things very very Smart people will find a way to get around.
So I'm very careful about you know when you say some through this should be -- not -- -- status.
We have to know what's on the derivatives market we just spent billions and billions of dollars and -- -- apologies for cutting off center thank you so much tech cop.
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