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CFTC Chairman Walt Lukken announced the creation of regulatory networks to react to recent financial market developments. “No matter the size of the agency, individual regulators do not have the resources to sufficiently monitor the breadth of the global marketplace”, Lukken said. “We must rely on the expertise of other regulators, both domestic and foreign, in fulfilling our public mission.”
Lukken also asked the FIA to review the 1995 report on risk controls to determine whether the findings should be updated given the current crises. “It is our collective responsibility, both industry and regulator, to remind ourselves of the dire consequences when risk controls go lax”, Lukken said. “We must remain diligent on this front.”
The CFTC will publish a concept release on the proper regulatory treatment of event contracts and markets, Lukken announced. The CFTC also will move to finalize its proposal on self regulation and corporate governance conflicts of interest. The CFTC will republish this proposal with clarifications to the definition of “public director” in the near future.