What Facts Do U.S. Taxpayers Need to Advise Their Congressional Representative on Dodd-Frank Regulatory Costs?
There is going to be a Joint CFTC-SEC Committee meeting tomorrow morning, February 18, 2011, to discuss the May 6 Flash Crash and other pending regulatory issues.
The Derivative Project submitted a Letter to the Joint CFTC-SEC Committee requesting the Committee gather critical facts for the U.S. taxpayer on the pros and cons of the continued use of certain OTC derivative contracts.
Here are some questions we would appreciate your comments on to forward to the House Financial Services Committee and Senate Banking Committee:
- Is it in the best interest for long-term sustainable growth of our economy to allocate significant U.S. taxpayer revenues towards monitoring ever-increasing speculative trading income?
- Should Congress institute a speculation tax to cover taxpayer regulatory costs on speculative trades?
- Is it more efficient for the U.S. taxpayer for Congress to decrease regulatory costs by moving OTC contracts that can easily be converted to a futures contract onto regulated exchanges?
- Will it reduce judiciary costs, resulting from price gouging in OTC derivative contracts, by moving these OTC contracts to regulated exchanges, which provide price transparency?
- Shouldn't unnecessary systemic risk be eliminated, whenever feasible, to protect the U.S. taxpayer from future crisis, such as the 2008-2009 financial crash?