CFTC Commissioner Chilton Speech Titled

CFTC Commissioner Chilton gave a speech in which he said the process of CFTC rulemaking had been altered by what he described as the "observer effect" (which, according to Wikipedia, is the concept that a process may be affected by persons observing it, and which is distinguishable from the Heisenberg Uncertainty Principle though sometimes confused with it). Commissioner Chilton also said that the CFTC's rulemaking would increase transparency in the swaps markets, criticized the corporate culture at financial institutions, said that professionals at financial institutions were overpaid, said that financial institutions should hire more risk managers, advocated for a futures insurance scheme similar to that for securities, advocated for the adoption of position limits rules, and said that the regulation of SEFs was a complicated undertaking.

Lofchie Comment: Wikipedia also relates the Observer Effect to (i) Schrodinger's Cat and (ii) the Hawthorne Effect.

Link here to Commissioner Chilton's speech.