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Financial Market Regulation: Benefits and Risks of Merging SEC and CFTC

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Report Type Reports and Testimonies
Report Date May 3, 1995
Report No. T-GGD-95-153
Subject
Summary:

This testimony discusses the Markets and Trading Reorganization and Reform Act--H.R. 718. GAO strongly believes that Congress needs to modernize the financial services regulatory system. H.R. 718 seeks to improve the effectiveness and the efficiency of financial services regulation by merging the Securities and Exchange Commission and the Commodity Futures Trading Commission, the two agencies that regulate U.S. domestic equity and futures markets. Although GAO believes that this is a logical step for Congress to consider as part of its continuing modernization effort, Congress must ultimately decide whether the potential benefits of a merger outweigh the risks. GAO briefly discusses the major benefits and risks that Congress needs to consider. GAO also discusses specific issues related to H.R. 718 that Congress should address if it proceeds with the merger.

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