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...first won jurisdiction over the instruments in a bitter tussle six years ago, but the SEC has been looking for a chance to gain control over the fast-growing market ever since. Last week the SEC made its move. In testimony before the Senate Banking Committee, SEC Chairman David Ruder asked Congress for broad new powers that would make his agency the ultimate regulator of stock-index futures and any new investment vehicles based on stocks. The securities and stock-index-futures markets, he argued, have become too intimately entangled to divide their supervision between two regulatory agencies. Said...

Author: /time Magazine | Title: Who Will Rule the Futures? | 2/15/1988 | See Source »

...Ruder chose his moment well. A day earlier, the SEC released a 900-page investigation of October's crash that provided the most detailed account yet of how trading in stock-index futures turned what might have been just a bad day on Wall Street into a debacle of historic proportions. The SEC identified at least three critical moments on Black Monday when futures-related program trading accounted for more than 60% of the volume on the Big Board, as traders caught with plummeting futures contracts rushed to sell the underlying stocks. At the height of the crash...

Author: /time Magazine | Title: Who Will Rule the Futures? | 2/15/1988 | See Source »

...Ruder's proposal was opposed not only by the CFTC but by two of the SEC's five commissioners, who said that a power struggle between the agencies would only divert attention from the need to reform the markets before they tumbled again. In fact, two of the largest financial markets last week took pre- emptive steps to lessen their volatility. The Chicago Mercantile Exchange, which handles trading in stock-index futures, proposed new daily limits on how far the price of a futures contract should be permitted to swing, and called for greater coordination between the stock and futures...

Author: /time Magazine | Title: Who Will Rule the Futures? | 2/15/1988 | See Source »

...Brady commission did not highlight the role of the specialist, but that may be a major topic of the report expected to be released this month by the Securities and Exchange Commission. SEC Chairman David Ruder contends that a way must be found to provide a much larger pool of capital for the specialists. Says he: "There is just not enough buying power in times of emergency...

Author: /time Magazine | Title: Wild Bears On the Loose | 1/18/1988 | See Source »

...weeks and months ahead, Wall Street's high-to-higher-flying style may be further crimped by additional Government regulation. David Ruder, chairman of the Securities and Exchange Commission, ordered the SEC staff to consider immediately ways to limit future mammoth market swings. Edward Markey, the Democratic chairman of the House Telecommunications and Finance Subcommittee, has called for hearings into the role of computerized trading programs that dump securities when the market falls...

Author: /time Magazine | Title: The Crash: The Shrinking of Fat City | 11/2/1987 | See Source »

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