While most of the remarks are peace and love, there is one aspect that is not, although it does not concern the historic jurisdictional fighting between the SEC and the CFTC. It is CFTC Chair Selig's statement that the CFTC "has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives," by which he means that the CFTC intends to resist any authority of the States over prediction markets, such as markets for sports events.  

It is not…

Director Selway's comments on 24/7 trading are further illustrative of how much culture at the financial regulators has shifted with this Administration. Prior regulators might have impeded the move to 24/7 (which was likely inevitable with the growth of Asian markets) worrying that some investors would be injured by trading during hours when the market is less liquid. By contrast, this Administration emphasizes the advantages of the ability to trade at all times gives the US markets over…

Enforcement penalties such as this one raise the significant question as to who is being punished. Investors who bought stock at an inflated price in reliance on the fraud are now punished again by the loss in value to the issuer.  

Ultimately, the parties that are really at risk if the Treasury Clearing mandate increases the costs of funding U.S. government securities, or results in a reduction in the liquidity of the market, are the U.S. Government and taxpayers, who will bear the increased costs of funding the U.S. Government's debt.

It is absolutely remarkable (and not in a good way) that the U.S. Government, under the prior Administration, failed to realize or to take account that the clearing mandate as…