Traders Magazine, March 2012
CQ&D: Which will add up to?
Mr. O'Malia: When all the regulatory authorities are done, there will be hundreds of individual rules, I suspect.
CQ&D: What should be done to prevent a recurrence of the segregation problems of MF Global, where huge amounts of money can't be found?
Mr. O'Malia: Well, first of all we have to find out what went wrong with MF Global. On some of these things, there are customer protection rules, but we didn't have the best insight into Futures Clearing Merchants (FCM) operations. The public may have had no insight into FCM operations. We didn't have timely review of financial movements within the FCM and should probably require stricter measures. We probably need better deterrents in terms of reconsidering penalties and spot checks. We also need to expose some of the FCM practices so customers have a better idea of who their FCM is and what activities they are involved in. I put out a paper on this at my Web site.
CQ&D: Commissioner O'Malia, than you for your time and courtesy.
Mr. O'Malia: You're welcome. Happy to do it.
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