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One senator has been leading the charge to reform trading practices like high for the -- trading.
And dark pools he says that if no action is taken it could lead to a quote.
Horror movie ending for the US markets senator Ted Kaufman as Democrat from Delaware and he joins me now senator.
You wrote a very -- up that piece this morning in the Financial Times what prompted you to write the piece -- -- -- -- so concerned.
About issues that frankly the SEC has -- told us.
They're looking to review.
Well child to be honest I I got started in this.
When I first read in March about the that -- revocation of the uptick rule on short selling are concerned about -- -- to marriage appears to have the SEC -- it worked in business school.
-- the uptick rule was what kept market's going down.
And there's been a lot of talk about it but there have been much done so far about not just the uptick rule but naked short selling and my concern is there is not been much done about any if any of the problems that were created during the the financial.
Debacle and yet people are still business through all the same things they were doing before in addition.
They've been a whole.
A group of new and relatively new last couple years.
Developments that also.
Are concerned me in terms of whether they potentially could be a problem down the road so there really has been much done.
The deal with a fundamental bombs in -- -- selling.
And Patti peoples wants dark pools all of these things and there's some new things like I -- -- -- trade which leads to -- -- -- location.
And we have the problem with flash.
Discussions -- that's -- market started to have so much been done in the past to make it that make things better.
And we have been talking about this we talked about it here Fox Business it Gary Gensler the CDC -- mean he's gone to Capitol Hill have you.
Have you sat down with -- and had a face to face conversation to discuss your concerns.
With -- -- yeah.
Yeah I'm not talking arrogance of -- primarily I've talked to Mary Schapiro.
I think you know unfortunately we've got Health Care Reform we have a war in Iraq and Afghanistan we've got a major economic things of financial.
Re entry -- have to wait for my real -- is -- real life things the Securities and Exchange Commission especially if they've.
The deal with these things and they and -- frankly there's been kind of a business as usual no sense of urgency.
Approach to a lot of these things and I you say abusive short selling used as a as a part -- example has really been nothing done.
Mary Schapiro said during her Iraq.
Nomination or if you want to do something about the uptick rule that's been proposals appear to have roundtable we'll talk about abuses are selling.
The main concern -- -- was just nothing really has changed.
Since we had this debacle before.
And I'm just concerned my major concern is that the credit markets are markets are the capital -- and it came to the success of the United States of America.
Making them work is not as a prime importance of phone number two is.
If we have another debacle then the regulation really -- -- people that people have felt for a long time we didn't -- -- regulation.
I think that's turned out to be the not to be true I mean Greenspan said he was dismayed by the results of self regulation.
And so I'm concerned first that we don't we have another financial that that people might help most people listen your program on Wall Street -- concerned that if that happens again.
You'll have massive regulation which he's very counterproductive in my mind.
Well you can't help but go backwards a little bit and think about credit default swaps and a lot of that was unregulated because I'm here in new York and I see this happening -- I'm able to treat -- and they be on the phone and trying to make a bid for something and have no idea there was no transparency in the market if you talk to those traders they but they do want transparent today that they think it's -- -- -- -- And Mary Schapiro has proposed a ban.
On -- stores in particular and gun battles aren't you look at -- civic a lot of authority in the work.
But -- but Carol.
They only -- the flash version originally when -- exchanges came to the SEC and asked whether they should do flash orders or not he's -- said fine.
It was only when the New York Times now reported it and senator Schumer naive brought it to their attention that they had that they stop the flash orders that that.
This is not -- was -- prior -- the second thing is.
It has been quite a while it does -- we still have credit default swaps we still have them not -- -- we still have dark -- copyrighted -- Really.
A lot of us well hasn't heard about -- I'll -- argument from this side is that from the Wall Street perspective is that there is a place for healthy credit default swaps that could be up plays.
Prefer dark pools that could be auditioning to be a healthy market positive bring more liquidity bring more investment and a mean.
To this kind of put a blanket ban on everything that -- -- bad -- -- -- you know on Memphis.
Until I actually that's not what I'm saying if you if you read what I've been saying I'm semi -- else.
What I'm saying is we should look at these things I wrote a letter to Mary Schapiro and so if you look at these things and review them.
I'm not suggesting what the regulations to be announced this very things that I'm just saying -- not quite a while since this does happen.
You know there are things that we know we're doing -- and that it would credit -- won't dark pools we are no.
Different no different decision might work we have a disaster.
-- -- senator Schumer talked to some of the same people I have -- for that story is out there senator Ted Kaufman.
Thank you for your own particular spot visit with me thank you sir.
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