It is not often when a regulator effectively turns on his own. I did a double take this morning while watching an interview on Bloomberg Surveillance when Bart Chilton, former commissioner at the CFTC, did just that.

This 4-minute clip also addresses the following: the perception of liquidity in the marketplace; Bloomberg’s Adam Johnson misconstrues some activity of high frequency traders during the Flash Crash as beneficial; the captains of finance operating in an irresponsible fashion.

The highlight of this clip, however, comes at the 2-minute mark when Chilton exposes his regulatory brethren while also alluding to the fact that some regulators were trying to do the right thing. One can only assume the powers that be must have silenced those who were not willing to bow down.

In my strong opinion, what one regulator or commentator may define as being asleep would be defined by others with a less deferential view as regulators who are captured and/or corrupted.

Why does this issue remain so important? I strongly believe that the presumption of meaningful investor protection remains the single greatest risk in our markets today.

Navigate accordingly.

Larry Doyle