FINRA CEO: Cracking Down on Insider Trading

" Joining me now is -- Texan he is it chairman and CEO of being -- we're very happy happy today great to be Good Friday. -- happen to listen in your speech today and you talked about and number of priorities are and but one of the things that you say most concerns you if this concept of market fragmentation. Explain to the -- that."

" as your viewers know in the world that used to exist a few years ago most trading was done in one place -- New York Stock Exchange and the NASDAQ Stock Market. Today that trading is spread over eight exchange's. Electronic exchanges and thirty dark pools. If there's no it and yet this surveillance that we do still looks on an exchange by exchange basis we can't work that way anymore. I have to see the full picture where things to fall between Democrats. So that's true what I was really calling for was to get an effective consolidated surveillance so that investors championship confident of the ethics of their mark."

" What does that mean is that the inclusion in that additional technology is it the inclusion of more oversight how will actually play out."

" Well we have the technology we it it would take some costs at some efforts but mostly it would take an agreement among all the exchanges in -- To identify a single place where that surveillance occurring in the put all the train again. It would take some time. But it's too important not to begin all right so -- that time -- or wrap this report. We could make some very real improvements in two years another thing is taking a stance on insider trading what it's doing. Well we were thrilled to see the leadership in the action is that the SEC that we expect to Galley and related management's. I it was a terrific case. Oddball we in new York stock for its packaging regulations have seen parts training and referred to the SEC and I think that was a part of what focus them in the area. He's the type vacations that have to be brought itself part of my insider trading when it's done by summoning -- to me like hedge funds for that time. Being able to bring this -- case that's terrific message. -- part of that from the electronic surveillance we do what most important thing."

" But a lot of that requires a lot of time money and dad and and labor out that you need manpower out there do we have the manpower. -- all of the regulatory agencies that are out there all the resource is that we have to stop this from happening again."

" Well you need the right people need people focused and he's the right technology. I think insider trading we've got the right people in the right technology and a great working relationship with -- yes it. I think people could feel good insider trading that you're going to see consistent and steady --"

" Another area that people want to focus more upon. Is the hedge fund industry in a year from now are we going to see hedge funds regulated. One here and --"

" Yeah I can always be a role for hedge funds they shouldn't be regulate same same ways mutual funds that should have more flexibility. But it makes no sense for them to be totally dark. These are entities that can impact the market and impact investors we've seen obviously situations that serious fraud where estrogen and apparently -- Concern about that training him so yes I think it within a year. You'll see them being registered with the SEC Odyssey both the SEC probably the Federal Reserve board as a systemic regulator going in and looking at the most at once -- a regular."

" Right but does that cause any concern that you're going to see -- transfer of wealth transfer and you know transactions arbitrage. If you will movement and transition. Assets and trading activity to different markets."

" great question. I think in this one. The the key markets in Europe are focusing and doing very much the same thing. I but I think -- that is the date that you need to focus went ahead and do you need to have controls need to ensure that. Money in and it is being properly custody. I any interest if trading activities is is operating appropriately you don't need to suffocate and that's the balance yes -- region and it -- Great catch him thank you for your time today. Thanks straight to be living. Acting --"