The Shad Johnson accord was adopted by then SEC Chairman John Shad and then CFTC Chairman Phillip Johnson to define the jurisdictional boundaries of the SEC and the CFTC. I had worked with Johnson, who was previously counsel to the Chicago Board of Trade, in drafting the law that created the CFTC in 1974. This made the CFTC the sole regulator of the futures industry.
As new financial instruments were created, it was necessary to amend this accord, and a new accord was adopted as a part of the Commodity Futures Modernization Act of 2000. I did pro bonowork on this statute as a member of the Coalition for Futures Reform.
I have previously written in this space that the CFTC should do its job to repair the damage done in the OptionSellers/INT FCStone debacle. However, the agency needs the blessings of Congress. So far, no one in Congress has even held hearings on this problem .
Michael R. McLeod