By Nick Paraskeva, Compliance Complete contributing author
NEW YORK, Oct. 9 (Thomson Reuters Accelus) - The financial industry’s self-regulatory organizations (SROs) are being pressed to conduct more rigorous cost-benefit analyses of their rules, to the same standards as federal regulators. This follows recent court judgments overturning rules issued by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), in cases brought by the industry on grounds that the rules lacked such an analysis.
“Any rulemaking, whether by an SRO or by the SEC, should be the product of a careful and balanced assessment of the potential consequences that could arise,” said SEC Commissioner Daniel Gallagher at SIFMA’s Market Structure Conference last week. Gallagher advocated the change as part of a call for a fundamental review of the U.S. self-regulatory structure, which consists of both regulators and exchanges. (more…)
