To expand on Commissioner Giancarlo's remarks about government-created "risk": governments create problems for the markets partly because government action can take place on such a grand scale, so suddenly and with so little regard for ordinary economic considerations. One example that is relevant to today's news, regarding increased capital requirements for forex transactions, is the action of the Swiss government with respect to its currency, which precipitated the recent dislocation in…

The bottom line is this: in the event of a successful cyber attack, not only is the victimized firm's business at risk, but the officers of the firm also may be charged with supervisory failure if they are deemed to have failed to install adequate computer defenses. While there is no question that firms should install defenses against cyber attacks, it is worrisome that individuals and firms can be charged with regulatory failure in the absence of any standards for adequate supervision,…

The CFTC adopted its cross-border guidance as an interpretation and not a rule. The problem with the agency's avoidance of the proper rulemaking process is that it deprived itself and the industry of the opportunity to conduct legal analysis and obtain adequate market commentary. Unfortunately, when the CFTC came to the conclusion that its own guidance was flawed, it resorted to rulemaking through staff guidance. That was a lost opportunity to fix the problem either by initiating a proper…

The proposed rule is similar to the ones that it would replace, but it is not the same. The new rule is broader, particularly concerning the scope of accounts that may be covered, and as to firms that do not supervise spouses' accounts. Accordingly, all firms, even those that require that their employees trade with them, will have to revisit their employee trading procedures if the new rules are adopted. The first step would likely be for firms to determine what accounts their employees may…