Financial Regulatory Forum

By Kevin Drawbaugh

WASHINGTON, Jan 14 (Reuters) – Senior U.S. regulators, including outspoken Federal Deposit Insurance Corp Chairman Sheila Bair, will tell their side of the story on Thursday to a commission examining the origins of the 2008 financial crisis.

The 10-member panel, in its first public hearing, heard a tale of misjudgments and regret from top Wall Street bankers on Wednesday, but did not get an outright apology or any new explanations for the debacle that shook world markets.

Four of Wall Street’s top bankers acknowledged taking on too much risk and having choked on their own financial cooking in the subprime mortgage market, but they defended their pay packages and the huge size of their businesses.

The Financial Crisis Inquiry Commission, created by Congress and charged with issuing a report by Dec. 15, will get a different view of matters from Bair and Securities and Exchange Commission Chairman Mary Schapiro.

Both are the leaders of agencies that were deeply involved in the run-up to the crisis that peaked in late 2008 after the collapse of former investment banking giant Lehman Brothers.

By Rachelle Younglai and Jonathan Spicer

WASHINGTON/NEW YORK, Jan 13 (Reuters) – U.S. securities regulators proposed rules on Wednesday that would require more supervision of unlicensed high-frequency traders who gain unfettered, or “naked,” access to public markets.

The Securities and Exchange Commission voted for a proposal that would require brokerages that rent out their access to the markets to have rules in place to protect against potential mishaps from unlicensed traders.

In the practice known as “sponsored” access, brokerages that have been approved to trade on an exchange rent their access to traders, who are then able to shave milliseconds from the time it takes to access the markets.

By Rachelle Younglai

WASHINGTON, Jan 12 (Reuters) – U.S. securities regulators are mulling a proposal that would require more supervision of unlicensed traders who gain unfettered access to public markets, two people familiar with the plan said on Tuesday.

Regulators are considering a proposal that would require brokerages that rent out their access to the markets to have rules in place to protect the markets against potential mishaps from unlicensed traders, the two people said.

The practice known as “naked” access or “sponsored” access, is when brokerages that have been approved to trade on an exchange rent their access to traders who are then able to shave milliseconds from the time it takes to access the markets.

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   NEW YORK, Nov 4 (Reuters) – The top U.S. securities regulator on Wednesday called on Corporate America to upgrade its proxy voting practices to ensure shareholders a greater voice in governing the companies they own.

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By Kevin Drawbaugh and Rachelle Younglai
WASHINGTON, Oct 27 (Reuters) – U.S. regulators would be able to peer into the secretive world of hedge funds and private equity funds under a bill passed by a key congressional committee on Tuesday.
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 By Kevin Drawbaugh and Rachelle Younglai
WASHINGTON, Oct 27 (Reuters) – Offshore funds would have to register with U.S. regulators under an amendment added to a bill mandating more oversight of private capital pools under debate on Tuesday in a U.S. congressional committee.

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  By Elinor Comlay
NEW YORK, Oct 27 (Reuters) – The top U.S. securities regulator said she was looking for ways to crack down on “naked access,” the practice of brokers giving high-frequency traders unfettered access to public markets.

Securities and Exchange Commission Chairman Mary Schapiro said on Tuesday that she had concerns with sponsored naked access, where brokerages that have been approved to trade on an exchange rent their access to clients who are able to shave milliseconds from the time it takes to access the markets.

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By Rachelle Younglai
WASHINGTON, Oct 21 (Reuters) – U.S. securities regulators proposed rules to shed light on anonymous trading venues known as “dark pools,” which have triggered concerns that only a privileged few are benefiting.

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WASHINGTON, Oct 14 (Reuters) – U.S. securities regulators will consider next Wednesday proposals to shed more light on dark pools, or venues where stock trades are hidden from public view, a notice on the Securities and Exchange Commission’s website said.

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