Keeping Market Regulations on Pace With Tech

" Evolution in both technology and trading do markets need tighter restrictions. A lot tighter. Our next guest thinks so joining us now is Delaware senator Ted Kaufmann senator thank you for being in here. Though much of the talk and may be additional regulation is focused on dark pools what are trading venues. Operated by firms like Credit -- that don't display ordered to the public and it all sounds very spooky and bad but what is that evidence. That -- evolution in trading are mad and hurt. All investor."

" That's it I think it's a good person -- and I think that the key thing is that one of the basic. Principles and everything we have to do in terms of markets and why they established the SEC MS is that. We've got to have transparency of what's going on and it has to be fair. And while dark pools and high previously trading other help liquidity and I am all for helping -- It cannot it's gotta be transparent it's gotta be fair. And right now dark -- make up somewhere between 712% all the markets. There's that we went from two markets senators have fifty. So I'm not saying that what prescription isn't that much regulation -- what I'm saying is we have to take a hard look out. And fortunately the this Thursday's commission I send Mary Schapiro -- transmission along better just face and saying. Let's review these things in my at a massive changes taking place they're going to do that I was very pleased that Jack Reed yesterday in the chairman reed of experience for -- right testified just like. Since they're going to look at this thing I'm very pleased to senator Schumer from New York talked about market surveillance. Of all crisis that's really where -- gone I don't think anybody is the stage to say. You know too much specific about what regulate we need to how much we need but we do need to look at these things is very important a lot of changes in market. There have been senators Brian Sullivan do you think of the equity markets or hedge funds or dark pools or whatever you do you believe that. There is a systemic risk around stocks. Absolutely absolutely I believe that's about -- my -- we really haven't changed anything. So that's coming down as you know Brian you I talked about. The fact that you can still do naked short selling where people don't control the don't have shares they can sell shares without him in the suspicions -- some of the things go on. But I previously trading in dark pools are short sales. Without holding the stocks there's things -- on this absolutely as a as a systemic problem. That we have to look out more cars because as as as you know -- vague about how this is basically this whole regulatory scheme is based on. Who are trading as opposed the visualization and nationalization came along -- very much like 70% of market trading -- Massive changes we don't know what's going on Brian that's always been a prescription for disaster from the past we don't know what's going on there's been massive changes we don't have transparency. Usually don't have fairness and we usually have disaster."

" Senator however what regulators. And no personal offense lawmakers always be playing catch up. To the private sector to the financial industry just simply because of you can make more money on Wall Street the right hand working in Washington."

" Well -- and today and I hate that fits that challenge the popular myth but I've worked in private sector artwork for right to corporations were totaled ten years there's a really bright incredibly. As talented people down here working for the securities exchange commission for the Department of Justice. Many people come out of college come out of law school and say I really want to make a difference. -- a way to make a difference is to come down here marketed things to we have good people we get even better people the situation makes some people. Making money is really really important to them. -- down -- in most the people here because they really want to make a difference and they are every bit as qualified everybody smart every bit as good as the people. Who are up they're almost been nine Iowa and and day from work I know a lot of -- work on Wall Street. And -- very very bright they act anymore right the people down here."

" Senator should all derivative products be traded. On an exchange some of your colleagues in the house even in the Democratic Party had suggested that OTC trading over the counter trading is -- white paper certain derivatives right."

" Why don't I think that's something -- have to look at not Brian to be beyond what I like to do is talk about some minus some about it not talk about some I don't know something about. And really it sounds to me that that makes good arguments that maybe we have to look at this could get back today against point and your point two. Anytime we create a crack. Even the slightest crack in what we're doing the regulation of the control these things very very smart people will find a way to get around. So I'm very careful about you know when you say some through this should be trade poppy trade on exchanges. We have to know what's wrong driven this market we just spent billions and billions of dollars and accurate and apologies for cutting off center thank you so much tech talk."