Earlier today, in an interview on CNBC, CFTC Commissioner Bart Chilton expressed his opposition to the plan proposed earlier this morning by Treasury Secretary Paulson on behalf of the Bush Administration. That took some courage!
The U.S. Commodity Futures Trading Commission (CFTC) is the Federal regulatory agency that has authority over the futures industry, and has the regulatory authority and responsibility to ensure the integrity of the futures and options markets. It has worked extremely well for the industry!
Commissioner Chilton said that he heard about this plan through the news media, not from Sec. Paulson or Pres. Bush.
He also pointed out that the futures industry is an example to the rest of the financial industry of being liquid, fair, open, innovative, and service-oriented. (I agree with him.) He said that the futures industry and its various exchanges have provided the world with efficient, inexpensive, technology that has reduced costs and served its community exceptionally well. He also enumerated how the futures industry is different from other financial services, and it would be severely damaged by being subjected to regulations and authority that control other arms of the financial services industry.
The futures industry was born in the mid-19th century out of the need for liquid, consistent price discovery for the farming industry and those who purchased their products. No futures exchange or futures broker has ever gone bankrupt and left its clients without their money. The commodities futures industry has served its market participants extremely well. It doesn't need to be changed!
If it ain't broken, don't fix it!
