About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

CFTC’s Lukken Calls for Three New Regulatory Agencies to Replace SEC and CFTC

Subscribe to our newsletter

Originally appeared in MiFID Monitor

Following the debate about regulatory scrutiny of the credit derivatives space that has been ongoing over the last few months, Walter Lukken, acting chairman of the Commodity Futures Trading Commission (CFTC), has now indicated that he wants his own regulatory body and the Securities and Exchange Commission (SEC) to be replaced with three new regulatory agencies. He believes that these new agencies would be better equipped to deal with an increasingly complex financial system.

Lukken explained to a futures industry gathering in Chicago: “I believe the United States should scrap the current outdated regulatory framework in favour of an objectives-based regulatory system consisting of three primary authorities: a new systemic risk regulator, a new market integrity regulator and a new investor protection regulator.”

He believes this would represent “a bold new direction” for the global regulatory system and the new systemic risk regulator would have the responsibility of policing the entirety of the financial system for ‘black swan’ risks and would take preventive action in those cases.

This idea is similar to an overhaul proposal put forward in March by Treasury Secretary Henry Paulson and the Bush administration, which put the Federal Reserve at the top of the regulatory food chain. However, there have been some concerns raised in the market about concentrating too much power at the Fed.

Subscribe to our newsletter

Related content


Recorded Webinar: How to harness the power and potential of ownership data

The importance of ownership data has escalated over the past few years as financial institutions have acknowledged its potential. Key use cases include integrated risk assessment, which uses ownership data to help financial institutions gain a clear understanding of supplier and customer networks, and identify and mitigate risk. Equally significant is the use of ownership...


ESMA Recommends Digital Token Identifier for Pilot of Distributed Ledger Technology Regulation

ESMA has recommended use of the ISO standard Digital Token Identifier (DTI) for the pilot of its Distributed Ledger Technology (DLT) regulatory regimen. DTIs are issued by the DTI Foundation, a non-profit division of Etrading Software, with a view to bringing standardisation to digital asset and crypto markets. The DLT pilot will apply from 23...


TradingTech Summit London

Now in its 12th year the TradingTech Summit London brings together the European trading technology capital markets industry, to explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility.


Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...