SEC chair Mary Schapiro was on Fox Biz today, talking about what the SEC can do in the future to step up enforcement.
She might have some good news for former traders.
Wall Street Pit has the transcript:
CLAMAN: How do you keep up? I mean, pro-actively. I’m not talking about enforcement of the rules already in place. But pro-actively, what is this SEC doing to keep that playing field level and fair for the investor.
SCHAPIRO: I think it is really important that we have a very, very big focus on the risks. And one of the things we’re going to do is to really bolster the risk assessments capabilities within the agency. And bolster our capabilities to do robust economic analysis. So that we’re in a position to understand new trading strategies and products, the implications of unregistered entities in the marketplace; build more effectively on an international basis with new products, and new strategies. So, we’re in the process of building that capability in, I think, a very fundamental way. And perhaps for the first time for the SEC, really to have some of the skills sets that it needs to keep up that we haven’t historically had.
CLAMAN: Does that mean you’ll have to hire more traders? More MBAs?
More financial insiders and experts. You know, I think of IT companies hiring former hackers, to try and figure out the backdoor, sneaky way that these guys pull off some tricks. Is that something that is a priority for you? And do you have enough money in the budget to do that? Or do you need more money?
SCHAPIRO: Well, it is a priority. We have to bring in people who understand financial analysis, who understand derivatives, who understand trading strategies and new products. Some of the kind of rocket scientists who designed some of the products that have been let loose on Wall Street. So we are trying to recruit those kinds of people right now. And we’re getting tremendous response to the positions that we’ve posted, looking for those new skill sets. We don’t have enough of those positions, at this point. But they’re working very hard to increase the size of our budget and have the ability to bring in people, directly off the Street, who really understand the business in a very up-to-the-minute kind of way.
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