So says the head of the country's biggest options exchange, Bill Brodsky:
"There are micro-market structure issues - flash orders, short-selling, high-frequency trading - that are being wrapped up into financial regulatory reform in a way that has a lot of political overtones," he said. "This is something regulators should be dealing with without undue political pressure from Congress."
So what should Congress be doing? (Nothing is an unacceptable answer; these, people have to get reelected, Bill!)
The central question is: what has this bill done to address systemic risk?
Let me guess: Nothing? (And what do you mean by systemic risk?)
I'm sceptical that the right questions are even being asked. What's happened is that a lot of the big banks have rounded up their end-users to say: "Everything's fine and don't change anything." If everything's fine, why were we at the brink of a disaster 1½ years ago and what's changed?
Interesting question. I propose, Madame Speaker, that we blame the hedge funds.
Financial reform is flawed, says CBOE chief [FT]