The annual International Futures Industry conference in Boca Raton, Fla. highlighted what the industry hopes to be a return of balance on the regulatory front. FIA President and CEO Walt Lukken, in his opening remarks, talked about how the pendulum had swung too far in the direction of proscriptive rules since the 2008 credit crisis thanks in part to the 22,000 separate Dodd-Frank Act rules, and that it was time for balance. Lukken said that the industry’s innovative muscles had atrophied due to the deluge of regulations and that it was time “to get back to the gym.”
Highlighting the focus on a move back towards more principle based regulation was the keynote address of Commodity Futures Trading Acting Chairman (who just prior to his remarks was officially nominated to be CFTC Chair) Chris Giancarlo.
“It has taken a long time – too long – for many American companies and citizens to emerge from the recession and hire, invest, and borrow again,” Giancarlo said. “So much policymaking, rulemaking, and thought have been directed at building a regulatory superstructure that ostensibly would prevent another 2008-style crisis that we’ve lost sight of the emerging challenges just ahead and what is the right regulatory response.”
His remarks were well-received from the crowd of futures industry executives, brokers, legal and compliance personal and technology vendors.
He concluded: “In January, we witnessed a new beginning for our country and a renewed promise for broad-based economic growth. This is a time to redouble our efforts to rebuild American prosperity: “To reduce regulatory burdens and flawed rules, to enhance the health and vitality of trading markets, to foster innovation and greater market intelligence; and to lift the prospects of everyone for greater health and harmony.”
Those remarks earned Giancarlo and standing ovation.
Ironically, the broader theme that dominated many panels at the conference was Reg. Tech (regulation technology). With fewer Future Commission Merchants and Exchanges participating, compliance technology vendors had a higher profile at the event.
Here is more nwes that came form FIA in Boca this week: