As the year draws to a close and many of us reflect on its events, make predictions, and set goals for the new year, the ""Securities Industry and Financial Markets Association (SIFMA)"":http://www.sifma.org/ is doing the same. In an ""interview"":http://smartblogs.com/finance/2012/12/11/q-and-a-sifma-president-and-ceo-tim-ryan-on-the-state-of-the-industry/ included in SmartBrief's 2012 _Best Of_ reports, SIFMA CEO Tim Ryan spoke of the regulatory progress and the lack thereof that has taken place in 2012 and his organization's concerns and expectations for the year ahead.
[IMAGE]SIFMA has been vocal regarding many industry regulations set forth in Dodd-Frank.
""No one, however, can be happy about where the reform process stands,"" Ryan stated.
He pointed out only one-third of the required rules set forth in Dodd-Frank have been finalized, and ""coordination among U.S. regulators is lacking.""
[COLUMN_BREAK]The highly contentious Volcker Rule, which bans short-term proprietary trading by large financial institutions, is of particular concern to Ryan and SIFMA.
""Our economy cannot withstand rules that inadvertently create new pockets of risk--like central clearing and the Volcker Rule,"" Ryan stated.
Ryan is not alone in his concerns about the Volcker rule, which is yet to be resolved.
At a Senate Banking Committee hearing in ""June,"":https://themreport.com/articles/dodd-frank-comes-under-fire-at-hearing-2012-06-08 Sen. Pat Toomey (R-Pennsylvania) said of the proposed rule, ""I'm concerned that it's going to limit the ability of banks to manage risk. It's going to have a huge cost. It's going to reduce liquidity in the markets.""
Ryan expects the rule will be finalized in 2013, but he made no predictions regarding its final status.
Other Dodd-Frank rulemaking will also continue to capture the focus of the industry in 2013, according to Ryan. The industry's future is also contingent on tax reform in the New Year.
As new regulations take shape, Ryan said it is important for rule makers to ""ensure the industry has a voice in the process to ensure that these rules do not unintentionally inhibit capital formation, lending and economic growth.""
While SIFMA plans to remain active on these issues, the organization also plans to focus on international market regulation in the new year. ""We believe coordination amongst international regulators is nowhere near the level it should be, and SIFMA will be pushing for greater collaboration and communication,"" Ryan said.