MFA President Outlines Principles to Strengthen Capital Markets

MFA CEO and President Richard H. Baker authored a commentary titled "Strengthening Capital Markets to Work for All Investors." The article outlines principles that are "critical for preserving and strengthening" capital markets as well as protecting investors.

In his commentary, Mr. Baker advocated more detailed disclosures of order reporting to facilitate better understanding among investors of how entities operate (cf. alternative trading systems). Additionally, Mr. Baker stated, it is important to give all investors access to newly mandated trading platforms. According to Mr. Baker, Congress "intended that all qualified persons could participate and have direct access to these platforms." However, he explained, certain "artificial barriers" exist that prevent investors from accessing certain trading platforms.

Mr. Baker also explained that it is important to continue to protect investors, which involves allowing customers to shield assets from the failure of big banks by holding them in individual accounts and protecting them from the failure of clearinghouses.

Lastly, Mr. Baker highlighted the importance of the global harmonization of rules and regulations. According to Mr. Baker, such harmonization will improve the flow of capital across borders, which will allow "markets to operate more efficiently and provide greater consistency and confidence for investors."

See: Mr. Baker's Commentary:"Strengthening Capital Markets to Work for All."