the cftc took a particular attack in implementing title vii. over the last few years, we've been barraged with proposed rulemaking without there being a comprehensive plan or comprehensive look at what the new regulatory structure would be what the new rule of the road would be. they had to comment individually on various pieces of the puzzling without seeing a whole puzzle. as we begin -- as we started to see final rule and have many, many final rules receipting to title vii we realize as pack -- are constantly pointing out there are numerous issues where the rules that have been finalized don't actually work together. and where there are significant gaps created, and where there is significant ambiguity. like wise, we are facing deadlines, for example, october 12, was a significant deadline for most in the derivative business. however, shortly before that deadline, literally at the 11th hour on october 11th regulators decided that wisely that market participants weren't ready. there was a lack of clarity and that would permit the market to fu

we're joined by cftc commissioner bart chilton to tell us more. always a pleasure to see you commissioner. thanks for coming in. first some history here. have you rude out the possibility of criminal behavior with global global? -- mf global. >> dave, good to be with you. criminal behavior is department of justice. that is a, not a ruling we make. we have civil fines and penalties. david: don't you join forces in terms of sharing information about these things. >> you're absolutely right but i don't want to make news what the department of justice may or may not do but good try, dave. liz: he tried. let's get to the issue at hand. we're expected to hear from your office about the new rules that would prevent money simply going off into the ether like we saw with mf global and perigrine financial. a lot of these where traders and brokers plant their money. it is shock and disgusting when you look at these innocent people who thought they were just parking their money and it was simply gone. what can you do to prevent yesterday's problem? >> i agree

the cftc has been very active on title vii and its implementation related to title vii.has lagged behind a little bit so it's important to remember in the united states we have continued with dodd-frank for having the derivatives the regulated by the ctc and ftc to create the possibility for legal uncertainty and ambiguity we've already seen with the proposed and the final rules. the cftc to a particular task in implementing title vii and that is over the last few years we have been brought with proposed rulemaking after proposed rulemaking that there would be essentially a comprehensive plan our comprehensive risk on the regulatory structure would be. so how to comment the various pieces without seeing the whole puzzle and as we started to see the rules we now have many final rules relating to title vii implementation. we realize as practitioners and clients are constantly pointed out there are numerous issues don't actually work together with the significant ambiguity. likewise, we are facing deadlines a very significant deadline for most of the derivatives market howe

>> my special guest is gary gensler who reports as the chairman of the cftc. good to be with you mary. >> pretty important month october 12th you began the registration for swap dealers. what does this mean for investors? >> it means this vast market the swaps market is coming under some of the similar forms that the securities and futures market had since the 1930s. it's going to bring transparency in the markets and ultimately i think lower costs to investors as there's more competition in these markets. >> that being said, there's already been some pushbacks specifically from some of the foreign banks who would have to register if they want to do business with u.s. banks, just today in the "wall street journal" there's a bank in sweden and singapore saying they're not going to do it. how do you make sure the foreign banks are in line with the u.s. banks so all the regulation has a level playing field? >> well, i like your word level playing field. it's critical whether it's a foreign or u.s. bank dealing with u.s. persons enough business that it's a level p

if as a result of karen's work it changes attitude and becomes cooperative with the cftc or the fdicor any other agency and really shifts away from this incredibly obstructive lobbying, that would be huge. that'd be terrific, and i'd be happy to write about that early and often. second point -- two points for karen. i read your papers, and i think they're very clear and very forthright, and you should be commended by everyone for that. but two questions come to me. first of all, do you agree that under current circumstances and current market perceptions which are critical that very large bank holding companies can borrow more cheaply than is the case for smaller and medium-sized banks and that this may well be due, according to people like richard fisher and tom hoenig and sheila bair, it may well be due to the continuing perception that they're too big to fail? .. so large and so complex, and there is no cross-border authority? >> great questions, and first i'll start off by again a green with you. the body of law and ruled is an incredibly consultative. some of that does pertain t

in the derivatives field a lot of regulations have already been put out by the cftc. in fact they're ahead of most of the other agencies but the regulations are now so costly and so troubling to the industry that they are turning around the whole swap market so instead of functioning under the swap rules that the agency has created, they are turning to the futures market and trying to turn swaps into futures so they don't have to comply with the swap rules. now, that says a lot about the kinds of regulations that the dodd-frank act has demanded of the regulatory agencies. and shows that in fact, this is going to be an unworkable statute. now what does it all mean in the end? what it means in the end, i think, is that we are going to have a lot of uncertainty in our financial system for a long time. i believe that the dodd-frank act is substantially responsible for the very slow recovery that we have had from the financial crisis since 2010. in the nine or ten months between the end of the recession in june of 2009 and the, and the final debates on the dodd-frank act t

back in the early '90s when i served as commissioner at the sec and later as chairman of the cftc, it was difficult to imagine the sheer size or potential impact of this then-emerging market. at that time the notional value of the deriff tyes market hovered around $10 trillion, and much of that was comprised of hedging by end users against the risk of currency or commodity price fluctuations; that is, companies were essentially using these transactions as insurance against an adverse event. while there were some regulators who appreciated the need to get a better handle on what was going on behind the curtain, industry strenuously objected to any regulation. and with the commodity futures modernization act of 2000, congress created a huge gap in the regulatory structure by specifically excluding most otc derivatives from any regulatory oversight. the result was a vast market operating behind an opaque curtain whose transactions were not visible to regulators or other market participants. the gap in regulation allowed a fundamental tenet of thriving markets, namely transparency. not on

the chairman of the cftc says he's disappointed by the ruling and the agency is looking for new wayso get their way. well, my next guest says the dismal economic news of the week remits no significant -- represents no significant change, just more of the same as the economy continues to slip. joining us now, wall street legislate, his tore your, lures lerman. lou, i'm looking at the number, and the dow jones industrial, and this is stunning stuff. up almost 10%, 9.8%, year-to-date. the s&p up 14.56%. the nasdaq up almost 20%, up 19.62%. these are incredibly glorious numbers. aren't you happy? [laughter] >> well, i'm happy about the results. of course, for everybody who profited by it, but unhappy about the techniques by which the market has been floated into, you know, 10%-15% increases in value. this is a federal reserve system money machine blowing lots of liquid air calmed feedbacks into the market. lou: you should be used to this. it's been a multiyear process now. monetary easing of one form or another, qe1, 2, 3, it is, but they don't call it 3. >> that's right. this has been w

we look forward to working with cftc.ng a second chance. >> the oversight could make all the difference. they were created as a result of the computer -- the consumer protection act of 2010. you still need to try to get them resolved with the credit reporting company before going to them for help. >> thank you. if you are planning to fly this thanksgiving, prepared to mate -- prepared to pay more than you did last year. fares for between november 17 and november 27, it was found the average trip will cost $386 including taxes, nearly 9% more than this time last year. >> a big congratulations to the orioles' manager. no surprise to any orioles fans he has been named sporting news magazine manager of the year. he turned a 93-loss team into a 93-win teams this season. the credit has hard work for ending the team's and fitness streak of 14 consecutive losses. it is the busiest single day of travel and barack obama's reelection bid -- 5,300 miles of travel. it's a bombshell -- this as a bombshell emerges from donald trump. >>

secretary of the treasury, you've got the chairman of the federal reserve, you've got the chairman of the cftc all raising concerns that the libor manipulation actually undermines confidence in the markets. so we can't have a rate in a program that is designed to instill confidence in the market actually undermine confidence in the markets. >> now, the treasury and the fed responded and say they don't control the interest rate. what about that? i mean, do you hold them responsible? what's the next step? >> let's demisty fi their arguments against doing this. treasury and federal reserve both agree, they share our concerns about the integrity and reliability of t.a.r.p. the first thing they've said is that they really can't control -- these are just contracts and the interest rate is set. the fact of the matter is, these are not regular contracts. they were emergency contracts with emergency funding. this is the treasury and federal reserve who have considerable leverage and let's talk about the need for this amendment to the contract. there's a significant emergency need here. this is an extra

we're seeing cftc numbers show liquidating positions and getting out, perhaps putting money into diesel and heating oil because galine's peak consumption season is over. you know, there is limited bullish side to gasoline right now. melissa: so could we see, i mean i this is the "frankenstorm" we're all waiting for, i was on the floor of new york mcantile exchange when katrina came along and i saw prices explode and that was really tough. could we see something like that again? >> just like everybody has been saying at least all the forecasters, we haven't seen a storm run this pattern this late, this expected path. it will be very interesting to see what plays out. how much damage there is. the storm may come in during high tide. we'll have to see what the implications are. we'll beatching the refineries specifically. melissa: yeah. >> what damage happens. i certaiy don't expect that we'll see the implications we did with hurricane katrina because, quite frankly the east coast is not the refining mecca. it is not the oil producing mea that the gulf was but there certainly could still b

which means we never expected, now the cftc --.iz: is in charge. >> is involved in it. >> this brings up the biggie, dodd-frank. dodd-frank of course has thousands of questions and thousands of subquestions, i lost track and some much them aren't even written yet even more than a year after voted in by congress. what do you think of dodd-frank? should it stay, should it go? should it be tweaked? is your voice heard among the regulators? >> our voice is heard. our view dodd-frank is the law. we are not presently arguing for repeal. that is not our position. we think that they have enough flexibility to actually implement the regulations. a lot more to go. our estimate is, when we end, 400 new regulations. 30,000 new pages in the federal register. liz: brutal. >> and what we would like to see them know, talk about this, talked about it this morning. we would like to see them, let's just take a breather. let's figure out what's the highest priority. focus on the highest priorities. let's sequence them properly and let's move ahead so

at the same time you have problems with the cftc inhibiting the amount or size of positions that peoplere allowed to have. and over in france you have the market -- nobody wants to store that kind of crude. so you have the retailers who in the past might have built inventories are simply saying we won't build anything from brent. they are, however, the nonretailers, the tone eowners crude are building up insventor in the united states. that was the pressure on market. natural gas having tried to rally specialry with talk about colder weather coming couldn't take it as crude oil was plunging. stop orders got elected. there's just a lot of supply out there. >> if you're a novice viewer to cnbc, don't worry if you don't understand words like contango, backwardation. do you want oil delivered one month, six months from now? the way that plays out can have impact. dennis, where do nat gas and oil go from here? >> crude oil clearly wants to still go downward, michelle. i see no reason to think it's going to rally. the only hope crude oil had was gasoline. what i think is interesting is that h

they are regulated by the cftc. that may have been factor. i'm quite sure the sec was not eager to see trading monday and tuesday, most of the market participants are out, there's concerns about thin trading, market volatility, maybe another flash crash, quite sure they were very happy to see the markets closed today. you have a different regulator over there. maybe -- different mentality. >> dr. j., i'm curious. bring knew this conversation. what do you -- what do you think the volumes will be like overnight? especially when it comes to the equity options that are going to trade, start 6:00 p.m. eastern time, 5:00 p.m. central. we will continue overnight. >> well, you wouldn't have very much trading at all, melissa, unless it dpetsz extend today far to the down side or too far to the upside. that's because there's no arbitrage. you can't do the baskets against these futures. and you can't do the options, of course, on ibm and apple and google and all of the things that people would like to trade right now. because though don't trade across t

you don't have the resources and neither does the cftc. i know you cannot say that so neat and will not ask you to comment but anybody who cares about the capital markets like tv diamond says he is should be advocating for more money for the agency's. you cannot do that. others can. leave aside your budget request and constraints come theoretically if it had the budget it needed what would that budget the? your term is coming to an end. [laughter] it would put in context of what you really need is people who care should focus. >> every year we do submit a budget we think we need to do the job. we frequently do not get that number because of the budget process. we are open and honest what we need to do if we don't get that what we will not be able to do. in my almost four years we have invested heavily and thin technology because that was in the dismal state but now we have capabilities the agency never had before. people say you don't need that many people but throughout my entire career technology allows you to work smarter and better and

back in the early 90s, when i served as a commissioner at the sec, and later as chairman of the cftc,fficult to imagine the sheer size or potential impact of this emerging market. at that time, the notional value of the derivatives market hovered around $10 trillion -- and much of that was comprised of hedging by end users against the risk of currency or commodity price fluctuations. that is, companies were essentially using these transactions as insurance against an adverse event. while some regulators appreciated the need to get a better handle on what was going on behind the curtain, industry strenuously objected to any regulation. and, with the commodity futures modernization act of 2000, congress created a huge gap in the regulatory structure by specifically excluding most otc derivatives transactions from regulatory oversight. the result was a vast market operating behind an opaque curtain, whose transactions were not visible to regulators or other market participants. the gap in regulation allowed a fundamental tenet of thriving markets -- namely, transparency -- not only to be

i think it's something that the overseers, the cftc and s.e.c.e markets have got to address and address quickly. trading equities on a subfraction of a penny basis makes absolutely no sense. it really encourages all kinds of trading behaviors that shouldn't be in the marketplace. i long felt since the implementation of decimals and by the way, decimals were the absolute right thing to do. pennies and subpennies were critical mistake. if we had kept the minimum variation at a nickel, right, there would have been a spread that incurred risk to buying and selling and would have maintained the incentive for capital to be allocated into the markets. with subpenny trading, no firm is going to put capital in the market to facilitate customer interests and it also with subpennies crushes the ability to charge commission. so what we've done is basically taken the lubricant out of the structure of the u.s. markets. i think they should revisit it. my own personal point of view, we should go to a minimum price variation of a nickel and i think that would cha

a july says the rules set to go into effect october 12th won't properly justified by the cftc, the rules would cap the size of positions trading firms can take in certain commodity contracts and expand restrictions to swaps trade. meanwhile nokia has another big customer. the "wall street journal" says the company is going to unveil a deal with oracle take. the company's oracle world conference in san francisco. nokia's recently signed deals as well with groupon and amazon which dropped google maps. shares up marginally this morning julia got to a chance to sit down with sheryl sandberg. so tune in for that interview. shares in banco popular have resumed trading. the banks approved a 2.5 billion rights issue. it will report record write downs and has suspended its dividend due this month. this comes after an independent audit of the country's lenders show they need an extra 60 billion euros. and from spain to italian bank, alessandro profumo is set to stand trial along with 19 other executives over allegations of tax fraud. that trial taking place in milan and that's where claudia joins

that comes as the cftc, taking the lead in the investigation, and the justice department, are still interviewingf global executives. this is the game plan. first comes the comet's report. it's coming weeks is a safe bet, but unclear -- looking for political bang, more before or after the election. focused on the election or get a push because, remember, jon corzine was an associate of the president obama, a wall street fund raiser. that m -- that comes first; then the charges from the government. we first reported in january that it looks like the criminal case against executives there, jooking corzine is difficult. the issue now is civil. unless they found something else. we don't know. i'm not in that room. civil case charges means you don't go to jail, but most likely, you are fined and thrown out of the business. i think that's what jon corzine faces. >> tong, sir, thank you, charlie. big breaking news day, leaving it there. >> chipolte shares dip like a chip. earnings after the bell today. >> as promised, breaking news on google, shares halted at 9%. shares that are moving today, winners an

the volcker rule we could have various agencies, the sec, cftc, all have different interpretations and. you see where i'm going here? the problem is is that it won't take much to get our economy on track. we've talked about that. that's a good thing. but the problem is, this election really, really, really is big about philosophical issues, because there's very little evidence i can give you that the government's ever going to fully finish any of this. how many years does it take? we're not shooting ourselves in the foot. we've cut our feet off. dra carl, back to you. >> good stuff rick and your point about the questions in the debate well taken. see you in a few moments rick santelli. >>> bob pisani is on "post 9" looking at oversold conditions, revenue continues not to be a hot spot? >> we've got a modest bounce. it's an oversold situation and that's certainly good news. market acting a little bit on the rational side. i want to point out what the earnings situation is like. we got a little bit of good news. number of companies raised guidance, particularly it's row space companies.

in the derivatives field, a lot of regulations have already been put out by the cftc.e other agencies but the regulations are now so costly and troubling to the industry that they are turning around the whole market. instead of functioning under the swap rules that the agency has created, they are turning to the futures market and try to turn swaps into futures so they do not have to apply. that says a lot about the kinds of regulations that the dodd frank act has demanded of the regulatory agency and shows that this is going to be an un workable statute. what does it mean in the end? we're going to have a lot of uncertainty and doubt our financial system for a long time. i believe that the dodd frank act is substantially responsible for the very slow recovery have had from the financial crisis since 2010. in the nine are 10 months between the end of the recession in june of 20 -- 2009 and the final dates on the dodd frank act, the average growth of the economy was about 2.5% in the gdp. since dodd frank was passed, the average growth is about to% until all the months

and i believe that privacy like most other issues of the cftc jurisdiction must also be viewed in the constitutional lens if we want to reach the best outcome for consumers. and the ftc israeli position on the federal agencies to balance consumer protection and competition in its analysis. for example, the privacy restrictions have an effect on competition by savoring entrenched entities that already have consumer data with a new entrance to obtain such information or it could encourage the consolidation for purposes of sharing data and as a constitution agency, the ftc should be sensitive to these kind of concerns. so, the commission has consistently recognized the crucial role of the long misleading advertising plays in fostering the competition between the current participants in the market as well as lowering the entry barriers for the competitors. however, in its privacy report, the commission did not address possible competitiveness factors of the recommendations including potentially reducing slow information in the marketplace and then certainly the services and products that