terrence duffy, the chairman of the c m e group. thank you for joining and sharing the expertise j >> thank you, treen kanjorski, ranking members of the committee iis am the exhibit tariffs emt d i want to thank you for allowing me to testify today. it is widely known futures markets are the leading you f indicators for cash market. rkets views of the markets activities have revealed no suspicious or a running is activity by the customers.f the the exchange didn't bust or ray price transactions. activit further, oury analysis indicated that the decline and the spider ets and three m stock proceededs to drop in the s&p 500 contract. as i will show in a moment they were far more severe even after they we far price recoveries in the s&p 500 contract. after sub liquidity in thste s&p future ar its effect spreads werees considerably better and the spider ets throughout the day on thursday. nsiders point, it is premature to draw any definitive atnclusions as to what caused the extreme market volatility on may 6th. what we do know is that

duffy, mr mr. duffy, even though no one had answers on may 6th, cme took the unusual step of commenting on individual participation in its markets when it denied citigroup may have executed an irregular trade. first, how was cme able in that frenetic day to absolve citigroup of any involvement and how do you resolve the statement with its policy of not commenting on individual market participants. >> that's a great question. it was a very difficult situation for us at the time because you have to realize we're working on realtime with the situation happening with the rumors that somebody from citigroup entered in a $16 million notional transaction. we knew because of the systems we have in place that that was cat goricly false. we could put ring fence citibank's inventory they did on a real time basis within moments. we traditionally would not ever make statements like that because of the situations the banks have been in. we thought it was the prudent thing to do on citi's behalf and the taxpayers

duffy. even though no one had answersa. on may 6, cme took the unusual step of commenting on individuae participation in its markets when it denied citigroup may have executed an irregularon trade. first, how was cme able duringpa that frantic day to absolve of citigroup of any involvement ant how do you recognize cme's policy of not commenting on market participation?he >> congressman, that's a gray question and it was a very difficult situation for us at because you have toarke realize we're working onipan realtime when the situation happening, with the rumors that somebody from citigroup entered in a $16 million action and instead entered $16 billion, we knew balls of the systems we that that was categorically false. we could put citibank's inventory, that they did on cme group on a realtime basis within moments. we tradition family would not ever make statements like that because of the situation the banks have been in. was the prudentd thing to do on citibank's behalf and actually on behalf of the taxpayer, since they

ten days ago, gillian duffy went shopping for a loaf of bread in the northern english town of rochdaleormance of his governing labour party, she decided to give him a piece of her mind. >> didn't say anything about the immigrants because they say -- all of these eastern europeans -- where are they flocking from? >> a million people, the british people have come into europe. there is a lot of british people staying in europe as well. >> reporter: and that's where things would have ended, had it not been for the microphone gordon brown forgot he was wearing when he got into his official car and departed the scene. >> reporter: mrs. duffy, despite later receiving a personal visit and apology from gordon brown, says she certainly won't vote for his labour party tomorrow. back in finchley and golders green, the local labour party candidate, alison moore, is trying to make sure that area voters don't follow suit. >> you don't know who you're likely to vote for? >> i've lost all respect for gordon brown altogether. >> i think we'll probably have to agree to differ there. thank you very much,

duffy please. >> the harmonization rules. when you are talking 50, 60 pools of productivity, some with protecols, it is going to be confusing for a marketplace. in order to be entered into a marketplace, and they don't fund the liquidity because of the protocols being in place, they are seeking liquidity, they are going to so many other pools trying to find liquidity, then you can find out why the prices did what they did. i don't think it is a big secret. i think the 1020 circuit breakers need to be revisited. they may be a bit light. so that needs to be done. i think the stop logic function nalt that the c.m.e. has in place, this is patented technology. it clearly works. the charts don't lie, the numbers don't lie. we had an opportunity to replenish our liquidity. that is the equivalent of a half of one% of the value of the s & p contract. we have offered this publicly to give it to the marketplace. we think it makes sense. we think there are a lot of good things we could be part of the solution to. it is important to try t

this term he was expected to face shaun duffy, the district attorney of ashland county.everal police officers in california making their mark after helping a little boy whose bike was stolen from a church parking lot. 10-year-old elijah dickens says an older kid pushed him and took his bike-some sacramento cops decided to chip in for a brand new bike. >> that random act of kindness. >> six police officers. >> out of their own pockets. >> yes. and they bought him this bike here just out of their own pockets. coy never say enough. it was just -- i have never heard of such a thing. >> they do a lot of good stuff, and they should be known for that, and thank you. >> you think it made an impression? elijah said he's now thinking of becoming a police officer when he grows up. >>> it only took ten minutes for firefighters to pull three people from the edge of a dam, but, boy, was it intense. we're going it hear from one of the firefighters, the one right there at the right. hi, i need to start saving on car insurance. money a bit tight? yeah, i've had to cut back, sell some stu

i was with my partner, pam duffy. we knew something was up as soon as we smelled the gun powder. with the rookie's help, we kind of started a perimeter. it was a combined effort of everybody. it's what we do. there were two guys in bomb suits. they are incredible heroes. amazing what they did. esu, canine, search and secondary device. combined effort by the fire department. it's what we do. this is our job. >> wayne ratigan is 46 years old, a humble hero having dinner with the mayor tonight. we continue the second hour of "larry king live." we'll be right back. >>> the president of the united states is at the annual white house correspondent's dinner last night when he received word something was up at times square. he's been updated since. he made a trip to louisiana to look at the gulf spill and has been in touch with michael bloomberg. let's go to the white house and dan lothian with how the white house is tracking the. >> reporter: the president has been in touch with mayor bloomberg. the president saying he did call him. he wanted to make sure the federal resources and state

duffy, do you? s >> we agree with that, and weagt see no issue with that. but again this is an opportunitw to saye we don't trade individul the ks. >> right.gr what about, i guess if you trade in option or you trade etf or yu something, you trade options. o. the moonies, do you trade those? >> cme group? no, we trade options on futures. >> okay. futures >> we don't trade the spider.s. >> okay. let me ask all of you, you become we have kind of gone from a highly structured duopoly, ord at least with the stock trading, to a much more fragmented least system. how would sto you advise regulas to meet the challenges of addressing market integrity and price discovery without hurtingn competitiong?integrit p >> i'll be happy to start him it the i think this is more your >> i belly, jumping. s i do think that you need to have the same set of standards and protocols across the multiple you ne markets. stanrds and it'se as simple as that. you can have one set of rules oe ite nyse and nasdaq and then you have different sets of rules that other. it's just are going to

alerted me to a car that was smoking, went over there and smelled gun powder with my partner, pam duffy. we knew something was up as soon as we smelled the gun powder. we think there were two rookie impact officers on the scene. with their help, i don't know their names, with their help we started a parameter and just a combined effort of everybody, you know, it's what we do. everybody's out there. i meaning, there were two guys in bomb suits last night. those guys are incredible heroes. amazing what those guys did. esu, canine, searching a secondary device. combined effort by fire department. it's what we do. this is our job. >> wayne ratigan is 46 years old, a humble hero, having dinner with the mayor of new york city tonight. much more on the as we continue the second hour of a special two-hour edition of "larry king live." only caltrate delivers 1200 mg of calcium and 800 iu of vitamin d, in just two tablets. share some tlc. tender loving caltrate, my subaru saved my life. i won't ever forget that. love. it's what makes a subaru, a subaru. (announcer) we all want to stay active. we

duffy political convergence between the united states and europe as a framework but neither of them explain why the u.s. diverge dramatically from its own past and from its allies, when it did. all of these contributors at important pieces to the puzzle, but in my view the literature has failed to fully explain the severity revolution in criminal justice and social welfare policy, largely because it has failed thus far too content adequately with history, region and race. history, because most accounts plan no further back than the 1960s. so that widespread incarceration from the ether. region because almost all analysts sideline the rule of the state of the federal confederacy were it germinate and grow stronger as. and raise because everyone agrees that it is an important veritable. relatively few have gone up on the deeply entwined history of criminal justice and racial subjugation as a way to make sense of the present ,-comthem with some new exceptions. in my own work, i have tried to bring these three factors to the floor, to expand the frame of temporal analysis to encompass the full

. >> and labor has held rotschdale about julian duffy and the 65-year-old grandmother who met the prime minister and he said afterward in the back of the car, i remember with his microphone, there was some big on thed woman that i had to meet. there was a theory that the women of rotschdale would rise up and defend the honor of jillian and vote against brown but actually not. here's the change since last time in rochdale. the labor went down. and conservatives went up eight but in any case, it was -- and the conservative gain in hastings and roye, 3% swing from labor to conservatives. >> and the supporters voted liberal instead of conservative, and a lett of them did. they would be a liberal democrat. a very small majority. >> and emily has something for us. i don't know what it is. >> such a wide variation and look closely. quhapped in carlisle was pretty startling actually. you you may remember we were talking about carlisle being the kind of seat that cameron has seen and needed to gain to make inroads into the north and they done that, this is exactly the sort of swing that -- above

sean duffy has been the leading republican candidate for a while. dan was a long shot, lost of the last two elections. on the democratic side, everyone is focusing on state lawmakers. people like julia from the stevens point area. russ, the senate's majority leader in the wisconsin state senate. lawmakers like that would be the best jump in -- but i said there are district attorneys, attorneys, private-sector people. the race is wide open. it could be like the wild west, kind of primary. host: it will be fun to watch for political fights. thanks very much. not only in wisconsin is a big deal, but on capitol hill. as you can see from this headline, prize chairmanship now open. this person was succeeded david obey. more junior members are also looking at the job. it is the money job on capitol hill with the committee having the power of the purse. let's return to the national security issues. i have a stack of stories here all connected to the times square bomb plot. our feed on this is from a number of papers. the islamic hamamabad official s he rece

that is the surprise of this election much given 13 years of labor, given some of the mistakes, the duffy incident, given the torrey press's range against labor. so on that fight alone, it's closer than it should be. >> come to this question of how well or badly cameron has done in detoxifying the brand, but i want to ask you, ol lin e, before these people cut you out completely in a very rude way, do you think there's any remote possibility of a liberal tory deal? >> i think -- michael said the other day and i think he was right, that the will of the nation will be revealed tomorrow and i think that will give us something to go on. i mean, personally, you know, when i look across the country and you look at how many councils are working together, you know, at the moment, there's a fight going on to wrestle control from labor and what will possibly end up is a an alliance. it's not -- -- you know, there e some sticking points in terms of policy and it will always -- i'm just going to finish here. it will always come down to policy in the end, because it has to be policy specific. there's

terry duffy is our final witness. he has served as chairman of the board from 1981 through 2002.ur statements will be in the record. mr. ketchum. >> chairman reed, ranking members, members of the subcommittee, thank you for inviting me today. i commend you for having today's hearing. i thank you for the opportunity to testify. i would like to commend chairman shapiro and chairman gensler for their own leadership during the last two weeks. immediately after the market yvette's on may 6th, in coordination with the sec, we began the process of trying to identify unusual activity that could have contributed to the rapid market drop. even before the data had been collected, we attribute approximately 20 firms during the period of the decline to the period of the decline to determine if