The comment by the Chairman of the CFTC that a "jump ball" provides an argument for more regulation is indicative of a regulatory "philosophy" that is exactly backwards; if the CFTC cannot make a solid case as to why regulation is beneficial, then it should not regulate. The notion that the government adopts a rule (particularly a complicated and expensive one) because there is a 50% chance that the rule will do less harm than good is so strange as to be eccentric. That the Chairman who has…

Commissioner Chilton's assertion that global investors will find the U.S. regulatory system attractive is one that should be subject to empirical confirmation. The CFTC should commission a survey of non-U.S. investors to learn how they view U.S. financial regulation. Given the amount of money being spent on new regulations that are supposedly attractive to non-U.S. customers, a survey would help determine what they really think.

There are two aspects of the disciplinary action and Commissioner Chilton's statement of support that are problematic.

First, in the middle of the Order, the Commission inserted a long digression under which it explained why its rules regarding risk management under Dodd-Frank are such a positive development, and, had they been in force earlier, might have prevented JPM's losses.

As a general matter, this digression within a disciplinary action seems inappropriate. It raises…

NFA Form PR is significantly less onerous than NFA Form PQR, the quarterly reporting form for CPOs. While NFA Form PR contains certain additional questions not included in CFTC Form CTA-PR, with respect to a CTA's key relationships and trading program information, the Form contains important exclusions from the requirement for a CTA to provide rate of return and AUM information for various trading programs, including those for Rule 4.7 funds. While firms that also function as CPOs generally…