Because the MFA's comments about the benefits of market study tests are intentionally unspecific, they might go unnoticed, and that would be a shame. The SEC should be conducting ongoing tests of market structure rules to see what works and what does not instead of relying on accepted wisdom. Obviously, such testing is expensive and imposes costs on the industry. Accordingly, it is important that any such test be well designed and, ideally, part of an overall testing strategy. In the…

Ultimately, Mr. Tarullo argues for a degree of governmental control over both public and private capital that is unprecedented both in its scope, but also in its subjectivity; i.e., government regulators creating rules that might be applicable to a single institution. Even if one were to believe that the government is capable of exercising that much wisdom, one should be uncomfortable with conceding to the government as much power as Mr. Tarullo would have it take. In fact, it is not…

How realistic is it to expect numerous global regulators who have different national interests, and often different political interests, to harmonize their rules? And even if they achieve harmony, imagine the difficulty of getting an agreement to make any material change. There is something to be said for regulatory disharmony and independent thinking, EXCEPT THAT every regulator insists on regulating each entity that does business in its jurisdiction.  So the path we end up on is…

FINRA also noted the potential uncertainties and risks of investors' relying on hypothetical back-testing results. This should likewise be an area of focus for firms that use such results for advertising purposes.