Changes at the SEC: A Time for New Directions and Old Priorities

• Published in: Financial analysts journal Vol. 45; no. 6; pp. 10 - 79
• Main Author: Gastineau, Gary L.
• Format: Journal Article
• Language: English
• Published: Charlottesville The Financial Analysts Federation 01-11-1989; Taylor & Francis Ltd
• Subjects: Criminals; Disclosure; Financial market structures; From the Board; Futures contracts; Insurance providers; Investors; Law enforcement; Liquidity; Prosecutions; Regulation; Securities and Exchange Commission regulation; Securities industry; Securities markets; Securities trading; Stock exchanges; Stock market indices; Time zones
• ISSN: 0015-198X; 1938-3312

A new complement of Securities & Exchange Commission (SEC) commissioners and a significant number of new people at the top of the SEC's staff hierarchy prompt expectations of the commission's new direction. The SEC excels at policing the securities industry and coordinating enforcement with criminal prosecutors. It has made considerable progress in enhancing disclosure while reducing its cost and inconvenience. Enforcement and disclosure should remain top priorities. Changes that need to be addressed include: 1. Attempts to regulate the market structure should cease. 2. Option position limits contributed to the October 1987 market decline and should be abolished. 3. Coordination with other regulators needs improvement, particularly that with the Commodity Futures Trading Commission (CFTC). 4. New York Stock Exchange (NYSE) specialists' monopoly position is a structural anachronism obstructing increased liquidity and should be abolished.