As is bound to be the case with any federal implementation of highly detailed new laws, not every party is going to be satisfied with progress, and in some cases there are polarizations.
Following yesterday's public announcement that the Commodity Futures Trading Commission (CFTC) had reached a satisfactory means of collaborating with jurisdictions outside of the United States on cross-border matters, today one particular senior official at the Securities and Exchange Commission (SEC) has presented a complete dichotomy with his dissenting announcement late during yesterday's business day.
SEC Commissioner
Luis A. Aguilar
Luis Aguilar, a Democratic SEC commissioner, yesterday explained his dismay at the length of time it is taking to haul the regulatory structure into compliance with most aspects of the Dodd-Frank Act, and that his opinion on the process is that "the SEC should stop dragging its feet and adopt rules to protect mom-and-pop investors from risks arising from trading in off-exchange foreign currency contracts".
Slow Progress A Cause For Concern
According to Reuters, Mr. Aguilar went on to explain that "it is simply not acceptable for the Commission to continue to delay the fact-finding and decision-making process."
"Though retail Forex transactions may provide benefits, they can pose great risks to investors" is Mr. Aguilar's opinion.
Speaking Out Amid Frustration
Mr. Aguilar said he was frustrated at the SEC's decision to postpone until July 2016 the rule-making on retail forex required by the 2010 Dodd-Frank Wall Street reform law. There are still around 100 laws mandated by the Dodd-Frank Act which the SEC still has to work through, despite this month being the end of the third year since President Barack Obama swore the Dodd-Frank Act into US law.
Mr Aguilar further explained that the SEC now expects the Financial Industry Regulatory Authority, the self-regulator for the brokerage industry, to take the lead on rule-making for retail forex, in addition to the steps made so far by the CFTC.
"It is my expectation that the Commission and the SEC staff will work in earnest to assess this market and either adopt new rules that accomplish Congress' intent or allow the law to go into effect" he concluded.
The SEC is not alone in this matter, as firms and regulatory authorities alike not only work toward implementing the entire reformation of the financial industry in North America, but also work internationally to ensure that electronically traded OTC products such as FX are standardized and conform.
