The afternoon deal: Regulation overdrive
A joint Senate-House of Representatives conference committee convened at 2:15 p.m. EDT to begin merging competing bills from each chamber into what will be the biggest overhaul of the financial rules since the 1930s. Columnist John Kemp explains the simple conference process and the not so simple reality of merging the House of Representatives and Senate versions of the financial reform bill. The “base text” for the regulatory bill is here.
Not to be overshadowed by the financial regulation bill, the Commodity Futures Trading Commission said it plans to boost scrutiny of high-frequency trading, which now accounts for as much as half of all U.S. futures volume, and was fingered for its role in the May 6 stock market “flash crash.” Get the details of the co-location proposal here.
The SEC approved new so-called circuit breakers. The rules will require the exchanges to pause trading in certain stocks across U.S. equities markets if the price moves 10 percent or more in a five-minute period.
Also on the regulatory front is news of the SEC hunting for fresh dirt on Goldman Sachs, hoping to bolster their lawsuit against the bank and perhaps force it to settle on terms more to the regulators’ liking. Read the FT article here.
Following is a collection of regulatory factboxes: