A Good Thing About Dodd-Frank Act: Jobs

Susan Hall
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Strategic Considerations for Selecting the Optimal IT Platform for Regulatory Compliance

U.S. Securities and Exchange Commission Chairman Mary Schapiro told lawmakers Wednesday that she'll use a $74 million funding boost to hire in its enforcement, inspections and trading and markets units - and to catch up on Dodd-Frank Act requirements, Bloomberg reports.


In just a mention, the story also says she plans to spend some of it to improve technology. My colleague Lora Bentley wrote about a Government Accountability Office report that found a world of woes at the SEC, including that auditors often resort to printed spreadsheets and calculators.


Of the 780 new positions she intends to add for 2012, 60 percent would be to work on Dodd-Frank, according to Financial Times. It quotes her telling a subcommittee of the Senate appropriations committee:

Many of these new positions would be used to hire experts in derivatives, hedge funds, data analytics, credit ratings, and other new or expanded responsibility areas, so that the agency may acquire the deeper expertise and knowledge needed to perform effective oversight.

She wants to add another 300 positions the following year.


It mirrors the hiring in the private sector, the story says, in which banks have been building out their "client clearing" operations, which it describes as:

... operations that will act as brokers between users of OTC derivatives and the clearinghouses to which they will need to connect.

That's creating a mini-boom in hiring of IT pros who can write code to get the banks' systems to "talk" to clearinghouses. The story goes on to say this is creating a rosy job picture for lawyers, consultants and others.


Meanwhile, another Financial Times piece argues that the stock market remains vulnerable to the high-speed "algo-bots" that led to the "flash crash" last year. Recommendations from the investigation by the SEC and the Commodity Futures Trading Commission have yet to be implemented.

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