All Articles Finance Modern Money ICYMI - February 7

ICYMI – February 7

2 min read

Modern Money

A collection of stories from SmartBrief publications and around the web…

RUKM!: The folks at the Commodity Futures Trading Commission are incredibly tone-deaf because inviting JPMorgan’s Blythe Masters to sit on the CFTC’s Global Markets Advisory Committee is an absolute stunner. Most detractors hammer Masters for being the godmother/creator of credit default swaps, but this isn’t even about that. A few months ago, the Federal Energy Regulatory Commission issued a report alleging Masters gave “false and misleading statements” under oath during its investigation into manipulation of energy markets. JPMorgan eventually coughed up $410 million to settle the charges. So … FERC says she lied under oath and now the CFTC wants to bring her in as an advisor. It seems like someone accused of lying under oath to protect herself/her firm probably shouldn’t be trusted to offer a regulator honest and neutral advise on market issues. Apparently, acting CFTC Chairman Mark Wetjen feels otherwise.

Former CFTC Chairman Gary Gensler spent a lot of oxygen over the past few years trying to convince derivatives market participants that better regulation would be good for their “brand.” Inviting the fox to advise the farmer on how to guard the hen house probably isn’t what Mr. Gensler had in mind.

Submerging markets: HSBC’s Frederic Neumann weighs in on why emerging markets are struggling. “Tapering by the U.S. Federal Reserve is no longer the clear culprit. This time, U.S. interest rates fell, not increased, which in theory should be positive for emerging markets because it makes capital inflows cheaper to sustain.” Neumann goes on to dissect political and structural issues that may be in play and calls for country-by-country solutions.

Do financial markets need a global sheriff?: Milken Institute Senior Fellow Chris Brummer and IOSCO Deputy Secretary General Tajinder Singh go point-counterpoint on the idea of a global financial regulator.

“Twilight Pools”: Fidessa’s Steve Grob tells the tale of “Twilight Pools” and explains how they might boost illiquid markets.