Rep. Barney Frank (D-Mass.), along with Rep. Mike Capuano (D-Mass.), introduced a bill last month, cited as the Markets and Trading Reorganization Act. (Frank retired from his House of Representatives seat this month.) This bill proposes to merge the Securities and Exchange Commission and Commodity Futures Trading Commission to create the Securities and Derivatives Commission. Frank said the current division “is the single largest structural defect in our regulatory system.” The House of Representatives referred the bill to the Financial Services Committee and Agriculture Committee to determine whether it should require a full House vote.
Under the Markets and Trading Reorganization Act, the new commission would be comprised of five members nominated by the president and confirmed by the Senate. Moreover, to limit partisanship, a maximum of three members can share the same political party. All commissioners would have a five-year term limit.
The Securities and Derivatives Commission would include three divisions: (1) Markets and Trading to oversee market conduct; (2) Issuers and Financial Disclosures to oversee issuing securities; and (3) Enforcement. The commission would also be able to impress fees on commodity and future transactions to help fund the commission’s regulatory actions. (“Reps. Barney Frank, Mike Capuano Introduce Bill to Merge SEC, CFTC,” BankCreditNews.com, December 3, 2012)