FINRA Chief Calls for Unified Regulator for Market Surveillance
Rick Ketchum, FINRA’s Chairman and CEO, recently called for a “unified, single regulator” to conduct market surveillance. Mr. Ketchum laments the “decline of the primary market concept, where there was a single price discovery market whose on-site regulator saw 90-plus percent of the trading activity.” Mr. Ketchum believes that the data “needs to be consolidated, with a single set of eyes looking at the market holistically.” He explained that a single regulator “would be equipped to meet market surveillance objectives more effectively.”
OUR TAKE: We can only guess which regulator Mr. Ketchum would nominate as the new uber-regulator. Mr. Ketchum’s concept runs counter to current market regulation which relies on substantive experts to regulate the markets and players they most understand.