Aggregated News From Investment Management Regulators

Chairman Tarbert’s Tract on Self-Regulation to be Published by Northwestern University


Please complete the required fields.

“Debates about the ideal form of regulation often pose a false dichotomy, sorting regulatory efforts into two seemingly oppositional categories: governmental or private. But this division offers an overly simple account of the regulatory structures that define modern administrative law. Instead, sound regulation is, more often than not, the result of collaboration between traditional governmental functions and self-regulatory measures performed by private actors. Far from being at odds with each other, government and the private sector often work together to produce regulatory solutions that balance effective oversight with the flexibility needed to adapt to changing circumstances …

“[S]elf-regulatory organizations (SROs) play a critical role in regulating the derivatives market, subject to broad CFTC oversight. This structure has for decades combined the key contributions of both the private sector and government into an integrated regulatory system that has proven adaptable to change. Just as an accurate study of government in the United States cannot consider only the President, Congress, and the Judiciary while omitting state and local governments, so too must an inquiry into U.S. derivatives market focus on SROs …

“As members of industry, SROs raise the proverbial fox-in-the-henhouse question: does the SRO really protect the interests of the public, or is it beholden only to its industry stakeholders? Concern about an inherent ‘conflict of interest that exists when an organization both serves the commercial interests of and regulates its members’ has been long-standing. The imposition of government oversight to help ensure that SROs perform their self-regulatory duties faithfully is an effective way to address this concern …

“One especially timely example of the self-regulatory framework in practice followed the coronavirus (COVID-19) pandemic, which took hold in the United States in 2020 and produced unprecedented market volatility in March of that year. For participants in the U.S. derivatives markets, successfully navigating the effects of COVID-19 required an integrated approach that tapped the strengths of both governmental and self-regulatory measures. In responding to an economic crisis of historic proportions, the CFTC and derivatives SROs came together to foster stability through collaboration …”

The full article, which was the subject of a lecture delivered last fall by Chairman Tarbert, will be published in Vol. 41, Issue 1 of the Northwestern Journal of International Law and Business. A pre-publication copy is available here.

This news item was originally published by the Commodity Futures Trading Commission (CFTC US). For more information, see the Source Link.

Regulator Information

Abbreviation: CFTC
Jurisdiction: USA

Recent Articles

The SEC Levels Up: Statement on In re Activision Blizzard

Feb. 3, 2023 Today, the Commission announced a $35 million settlement with Activision Blizzard Inc. (“Activision Blizzard”).

Mr William Stephen Cairns (date of Birth 15 January 1949) of Key West, Doyle Road, St Peter Port Guernsey GY1 1RG — GFSC

Date of prohibition order pursuant to section 33 of the Financial Services Business (Enforcement Powers) (Bailiwick of Guernsey) Law, 2020 and prohibited functions: From 2 February 2023 until 2 July

Mr Du Preez Gert Vermeulen (Date of Birth 5 August 1987) of Doyle Court, Doyle Road, St Peter Port Guernsey GY1 1RD

Date of prohibition order pursuant to section 33 of the Financial Services Business (Enforcement Powers) (Bailiwick of Guernsey) Law, 2020 and prohibited functions: From 2 February 2023 until 2 Mar

Publication of a Notice of the fact of a Prohibition Order and a Discretionary Financial Penalty — GFSC

On 2 February 2023, the Commission imposed discretionary financial penalties as follows:  Mr William Stephen Cairns (“Mr Cairns”) a financial penalty of £133,000; and  Mr Du Preez Gert Vermeulen (“M

Get the latest from Regulatory.News in your inbox!