Whats needed is an order displaced facility. It doesnt have to be mandated by the government, bit has to be something where private entities can create these things where the price res made public, not necessarily through a consolidated system. But if not reuters or others will consolidate the information just as incident either active does. But most importantly, a system where youre not allowed to trade through those prices because youre not doing your client a service by failing to pick up the easy to pick up trade. There is one additional complicate. If you say you cant trade through that price, you must make that price available so it can be taken. But if anybody can take a price, then it has to be the case that the trading system has to be an all to all system where if i grab it i can settle the trade. We do this all the time in equities. Why should it be so difficult to do it in another system. Theyre just securities. So lets settle them up that way. These are the order handling rules that i referred to before that made equity trading so incredibly effective. It wont be the same in bond markets because there are so many bonds. But to the extent that it makes the bond markets better, it will make the somebody else better off. And so the total value of those 48 that traded through oh, i had it here somebody else. The difference between the trade price ta they received and that they might have received times the not the full size of their trade, but only the displayed size that total value adds up to 600 million,ed 700 million per year and thats just on the limited daddy that i had available to me. So there is huge potential for change here. If we save that money for investors, how much more willing will they be to buy Ge Securities or investors. If you had had access to platforms like that, would that have been a benefit to ge . Well, i think the platforms are first of all, i think there is a role for electronics platforms, absolutely. I think i think the key to it is and dr. Harris touched on it. How do you make it so most buyers and sellers use the platform as the means of choice for buying or selling securities . And if that were the case, and to the extent it removes the inefficiency and truly security transactions are transed at the best levels then, you know i think for an issuer, it does start to set a true secondary market level that potentially is tighter than what might have been and then that new issue premium is probably a tighter one than people would ask for when theyre trying to build a buffer in as occurs nowadays. And i think the key question is how do you encourage people to make use of this so that the majority of transactions do occur on certain selected platforms because then people have access to that information. I mean, in some ways, were talking about Information Transparency because a logical buyer would not allow a price done at a worser level if they knew the better level potentially existed. But because they dont have that information, they just think theyre getting the best price and they do it. And i think thats a very big question. How do you ensure that it becomes the systems of choice or the platforms of choice and that there is this free flow of information that hits you know, 80 , 90 of the players in this market. Our regulators, how do we i think transparency is definitely key in our slots and futures market. We were mandated under dodd frank to have such a trading platform. And i think with that, the markets will be transparent and why wouldnt necessarily say well work for the income market given the number of bonds that are there. I do think some of the suggestions that were put out in terms of mandating the more liquid benchmarks for the securities. Saying its a good idea. And i think for the most part, if we continue to share data with the regulators, i think that will create an incentive for the market to come up and be more creative, as well. So moving from big to small, it occurs to me this whole conversation believe to me its occurred to me before, but we were and having talking about systemic risk. I think dr. Lang was talking about it in that context. Sandy was, too. And kind of interesting that of all the things dodd frank did, it created a Financial StabilityOversight Council to find and address pending systemic risks and here is one were having a big conference about and talking about and its been written about for years and not real obvious action being taken. I guess theyre busy designating insurance companies. So i think we should expect and demand more out of any Council Given the type of power that fsoc has been given to this issue. They have, of course access to the ofr, you know, a supposedly independent group with some really smart folks who are supposed to do this kind of research. They can research these issues and get the data. Larry can help them if they need it and they can report up to fsoc and it would be nice to know more of that is going on. Maybe it is. Im famously not a member and every now and again i read in the journal what happens. Or bloomberg or whatever. So i just think not enough is happening on these issues, the actually liquidity crisis itself and looking at the aggregate impact of regulation and its role of the liquidity. Both of those should and could be happening at ofr. Moving down the scale, then, within the fixed income markets that we oversee, because we have authority there, i view it as kind of two main issues. Market structure Bigger Picture and microstructure issues like dr. Harris was getting at. But theyre so intwined that you have to look at both at the same time. We still have, as i said earlier, markets that look like they did in 1950 guys named vinnie and joey are still trading tens of billions of dollars on the phone and its very opaque. Before, you would have no idea what the prices are and those price res post trade. And we, as an agency, we as i think a government need to decide, is that the right Market Structure . And if not, the worst possible thing, as weve all said, would be for congress to come in and do a title seven on that market and say all of a sudden, lets have Central Clearing and Staff Exchange like trading. It sounds great, its an equity market like or a future market like construct. It was laid over with derivatives, a formerly otc market and it hasnt gone all that great. Well see how it turns out 10 to 20 years from now. So i think thats a huge issue and one we need to wrestle with. But at the same time, we recognize the retail participation in these markets. Its 75 rev tail given the tax advantage that makes sense. In corporate, its getting close to 50 . And half of that 50 through aets managers is half direct. Its certainly close to dunl double digits if not 11. Thats a huge number and a huge notional and if we can bring, as commissioner bowen said, more transparencies, if investors un, a, what theyve just paid to do a trade, whether its a buy or sell, if they understand what the prevailing prices are before they do the trade as opposed to after, and if they get the pricing and information that i think is being inflicted upon them today, they might go get those pitch forks and, sorry dan, go after their dealers and demand a change in Market Structure that provides more efficiency. And i think dr. Harriss idea which if you didnt see it he ran in the wall street journal a couple of moss ago is hugely important. One that i admittedly hadnt thought about. But im not a ph. D. Economist. This notion of handling is an apt one. You can get major market changes coming from the grassroots. If you provide this more transparency at the retail level, you might get more liquidity and other changes and i hope and expect that we can do that. So i think the commission is actually you know as joking as ive been i think on this front of retail transparency pushing the sros to do more. I still think its not enough. I think the commission should change its own rules on confirmations to show customers how much theyve paid on a trade. I think that would change a lot. And then on the larger fixed income issues, thats why i think we need to commit our staffing resources, start thinking Bigger Picture and entertain at the ideas from the industry that hopefully dont require being rules but that can make big shifts. Weve done a lot of talking about it, but its time to really put it in motion. You brought of an interesting point about fsoc and their role of being the coordinating entity. And this is a very important subject. Is this dialogue going on within fsoc to your knowledge . My interesting isnt really great with respect to fsoc because they dont tell us much. And i read the annual report and in the annual report this is something theyre looking at. I think it was on about page 117 and it talk ss real quickly about the context. So i dont know. I hope more citizens of this country when they sit back and hope that we in washington are doing things that i know were not, i hope that theyre doing this as opposed to spending all their time figuring out whether to make institutions that should be able to fail too big to fail and designating them. I hope theyre going to commit to that. But i honestly, chairman dont know. This report thats a joint one is any indication in terms of how our agencies can Work Together then im pretty excited about what they will do for us. So there is something in the annual report. That is something that the principals of the council have discussed. And, again this report is an interagency effort which is the cftc and the fed and the treasury, it is not simple i think what the fsoc try toes build on is the expertise of each of the agencies. This report requires the expertise that the Federal Reserve system can bring to it and understanding treasury market transactions or the cftc can bring to it in the futures market. The data are immense. Transactions are being done in milliseconds. It doesnt take very much days before you get into billions and billions of transactions and identifying parts. I think its a pretty good example of some ways this council can be effective. And just one related point, not that you dont have enough to do, mr. Chairman, but in this context, im not going to disagree. I think the report is good quality staff work and you do know, of course, ta given the exceptions and the law, there is no Regulatory Authority in the treasury markets by either the fed, the cftc or the sec and quite honestly, i think thats Something Congress should look at. Our time is drawing near and we still have so many questions left. Is there anybody that wants to make a comment of something that you thought we would talk about but we didnt get a chance to talk about and dr. Harris . Sure. Very very briefly when the trace data first became publicly available, mike piebar now a commissioner of the exchange of the s. E. C. And i and another woman named amy add ward did a tudy of transaction costs and bonds. And that study showed something that very few people have appreciated. And its a shame that they dont. It shows that an issuer who has lots and lots of issues that are very complicate that those issues trade in less liquid markets than the issuers who have few issues outstanding and issues that are very simple. And so we should somehow try to figure out how to great the issuers, which they are municipal issuers or whether they are corporations to issue fewer bonds. They can reissue existing bonds. The states can form Municipal Bond banks. So the mosquito distinct doesnt know anything about it. If we could just beat down the number of names these markets would operate more effectively. Theyll be liquid again and its according to the demand. One other very quick comment, mr. Leland said something that really bothered me. Which is that he there is a story that you had about holding a bond that you would be forced to divest of because the period in which you had to hold it would be too long. Right. So that is really a concern. Unless there is a really good reason for a regulation like that, hes at a disadvantage to his competitors. And i really hate to say unbalanced playing fields. We really need to sur vale va all our regulations and make sure theres good reasons for it. Where reasons like that arent present or theyre reasons that date from times past its not fair that his firm shouldnt be able to adapt to a changing world and that he ends up losing his business to people who, you know, hedge funds or otherwise that arent similarly regulated not because they arent regulated, but simply theres no reason for it. Well, there has been a great discussion. This is a discussion i think its not just a onetime event, but its something that should be ongoing. Im hopeful that more of this kind of dialogue will go on. I want to ask our audience to show the appreciation for the thoughtful presentation. And i personally appreciate all of you participating in this. I know that these are very busy people and ive found this to be very simulating. With that, we are adjourned. On the next washington journal, the latest developments in the Iran Nuclear Negotiations and an update on how the House Select Committee benghazi plans to proceed with its investigation. Well hear from a couple of members of congress. First, representative jan sakowski of illinois and later, republican congressman mike pompeo of kansas is a member of the select intelligence and select benghazi committees. Washington journal live every morning at 7 00 a. M. On cspan. You can contribute to the program by phone and on facebook and on twitter. The House Foreign Affairs subcommittee on europe holds a hearing tuesday on the future of the European Union and the u. S. Relationship with eu members. Live coverage starts at 2 00 p. M. Eastern here on cspan3. Book tv is television for serious readers. And join us this saturday starting at 11 00 a. M. Eastern for our all day live coverage of the harlem book fair the nations flagship literary events with author talks and discussions with historians and on sunday, august 2nd author and code pink cofounder ma dee ya benjamin. Saturday, weve live from our Nations Capital for the National Book festival celebrating its 15th year following sunday with former second later and senior mern enterprise institute, lynn cheney. That will be on cspan2s book tv. Next a look at u. S. Vietnam relations 40 years since the end of the vietnam war. The vietnamese general secretary spoke at the center for strategic and international studies. This is an hour. Please be seated. Your excellentsy mr. General secretary, am bass doers bing and osesus, act bass doors from the asean Excellence Committee ladies and gentlemen, welcome to cis on this historic occasion of the visit ever visit by a secretary general of the communist party of vietnam to washington, d. C. And the white house. I think all of you mate know, but just in case you havent heard, yesterday the president of the United States president obama, met with the general secretary in the oval office and that meeting went well over time which is a good sign for all of us who were watching the event. Er part of history being made today. My name is ernie becauser, chair here at csis. It is my distinct honor to welcome you to csis for the bannon tree leadership form featuring his excellency, win fu chong for an important policy key note speech entitled u. S. Vietnam relations in the changing world. Id also like to thank ambassador ambassadors who played leading roles in making this historic visit a reality. Thank you, too, to ambassador carla hills who has graciously agreed to introduce the general secretary in her role as a leading member of the csis board of trustee necessary just a minute. But before i invite ambassador hills to make her remarks a couple of housekeeping announcements. I invite you all to live tweet todays speerch. And in the unlikely event of an emergency, i will act as your Security Center today. If we need the evacuate, the exists are behind you. Please use the stairs, remain calm and meet in front of the billion across the street and please follow instructions from csis staff. Now it is my pleasure to introduce a good friend of csis and a good friend of mine ambassador carla hill. Carla played a vital role in making the United States competitor most importantly in the george h. W. Bush administration. Shes served in other cabinet positions and her accomplishments in the legal and corporate sector res legendary but too pneumonia res for me to recount here. So id like to thank her in particular for her role today in this historic event introducing secretary chong. Carla. Thank you ernie. That was very gracious of you. Let me say to all of you that its a great honor to introduce the honorable win fu chon who serves as the general secretary of the communist party of vietnam and the secretary of the Central Military commission vietnams two most powerful policy positions. The general secretary trong was born in hanoi, studied literature at Vietnam University and obtained a graduate degree from the Ho Chi Minh National academy of political and public administration. Early on he began to work for the communist review. The theoretical and political organ of the communist party. The vietnamese Central Committee. In 1981, he went to the soviet union to study at the uss rr academy of social services where he received a doctorate degree in political science. He returned to hanoi to resume his work for the communist review where he rose to be editor in chief. He is regarded to be vietnams most prominent political theorists. General secretary trong has been a member of the communist Party Central committee since the early 90s and over the years hes served in a number of prominent government positions, including the secretary of hanoi citys party committee, making him the de facto head of the city authority. Member of the polit bureau of the communist party in charge of idea lonely idealogical, cultural and Educational Affairs of the Party Central committee, chairman of the Central Committees Theoretical Council in charge of the parties, theoretical work. Chairman of the national assembly. And since 2011, and currently, is general secretary of the communist party of vietnams Central Committee and secretary of the Central Military commission of the communist party. Your excellency, we are incredibly honored to have you at csis and look forward to your remarks, so please join me in welcoming the general secretary to speak at this podium. [ speaking Foreign Language ]. Translator good afternoon, everyone. It is my great pleasure to be with you here today on the occasion of my official visit to the United States and i would like to thank the center for Strategic International studies for inveeting me to address this meeting. Csis is one of the preeminent institutions for research and economic change in the United States and it plays a Critical Role in promoting exchange and dialogue among schoolers and people on issues of significant importance to international peace, security and development. My compliments to your outstanding achievements and thank you all for your presence. My visit to the United States comes at a time when we are celebrating 20 years of diplomatic relations between vietnam and the United States. This is a meaningful time for us to reflect upon the relationship between our two countries. And to share the vision towards the future. So today, allow me to show you some of my thoughts about vietnamu. S. Relations and there were events in the history of vietnam u. S. Ties that are little known. Thomas jefferson, before becoming the third president of the United States, tried to obtain from vietnam to grow on his farm in the state of virginia. A hundred years ago, the vietnamese who later became president ho chi minh during his quest for National Liberation set foot in the city of boston the starting point for the revolution for independence in the United States. During world war ii vietnam and the United States were allies on the front against the vietnam independent led by president ho chi minh rescued american pilots who had been shot down by troops in vietnam. I would like to tell you some details. Out of the 17 american pilots rescued by vietming was a man named william shaw from the state of texas. He was met by president ho chi minh and president ho chi minh brought him to china and to hand him over to american commanders stationed there and he wrote a slogan to call on the vietnamese people to rescue the american pilot and these were publicized on the independence newspaper. He also made poems to call to remind the vietnamese people that the u. S. Army is our friend and rescuing american pilots is our good intend. The declaration of independence of the new vietnam in 1945 began with a quote from the american declaration of independence all men are created equal. They are endowed by their creator of certain inalienable rights. Among these are life, libber today and the pursuit of happy ps. First of First Nations that the president wished to ties with was the United States. He wrote 40 letters to american leaders, including president harry truman to ask for a full cooperation with the United States. Then president ho chi minh expected his desire for full cooperation with the United States, but only recently did our two country cans staep establish comprehensive partnership. However wbts regrettable that some historic opportunities were missed and we had to encounter periods full of twistes and turns in the two countries until relations in 1995. Today in america, there are still different opinions about the war the id conducted in vietnam in the 20th century. For the vietnamese People Freedom and national unification, it is not the war against the United States nor one against the American People. Even in the midst of war, the vietnamese people still maintain friendship with the American People and Many Americans stood up in protest of the war and expressed solidarity with the people. A remarkable example was Martin Luther king jr. After the end of the war, vietnam decided to put wind the past and look to the future was suffering heavily from the consequences of war, was extremely in death, 4. 8 million supposed to Agency Orange and hundreds of thousands missing right in their homeland. The government, and people of vietnam were actively engaged in an Effective Corporation with the United States in accounting for american soldiers missing in action in vietnam. Today, all americans who come to vietnam, including war veterans are welcomed. And they can still a friendship of the vietnamese people. That may not be easy to understand for some, but thats the truth, that all those who used to come to vietnam could see firsthand. This morning i had a meeting with senator john mccain who is a chairman of the Senate Committee for Armed Services and he records sorry the visit of himself and his wife to hanoi. And hes his wife, when in hanoi, asked something to take her in a motor to ride around the city of hanoi. She was so excited about the motorbike riding and she was very impressed at the sincere friendship and hospitality of the vietnamese people. Having recalled history, and the persistent desire of the vietnamese people, friendship and cooperation between vietnam and the United States. Regarding vietnamsoous relations over the past two decades, 20 years ago could have imagined how vietnam and the United States could overcome the pains of war to build such a Robust Partnership as today. Over the past 20 years, vietnam u. S. Relations have gone from strength to strength all the way to important milestones from we have normalized relations, we have staepd diplomatic ties, we have a bilateral trade agreement in 2000 and most recently in 2013 13 we established the comprehensive partnership and bilateral relations keeps growing sorry bilateral cooperation in a wide range of areas has made substantial progress. Economic cooperation has kept growing and the United States today is vietnams leading trade partner. Cooperation in science, technology, education and training has seen very positive steps forward. And do you know how many vietnamese students are there in the United States . There are currently 16,500 vietnamese students studying in United States and vietnam is the number one country in Southeast Asia with the largest Student Community in the United States. Bilateral trade over the past 20 years increased by 130 times from 400 million u. S. Dollars in 1995 up to 36 billion u. S. Dollars in 2014. Cooperation in japans and security has made steady progress with the signing of the memorandum of understanding on bilateral defense cooperation in 2011 and particularly the joint vision statement on defense relations in hanoi in june this year on the occasion of the visit to vietnam by the u. S. Secretary of defense. Vietnam and the United States also enjoy a good combination on Many International and regional issues from nonproliferation counterterrorism, climb change response to Maritime Security, nuclear security, maintaining peace, stability and promoting cooperation in the asia pacific region. Humanitarian cooperation including activities for legacy issues has been realized effect hely by both sides. It is vietnams consistent policy to consider those missing in action during the war in vietnam a humanitarian issue. People to people ties have been increasingly expended and act to enhance understanding and friendship between two countries. These for respect for each others inspection sovereignty, territorial integrity political regime for mutual benefits. Along the way, vietnam and its viewers have achieve Common Ground of these bral principals and this is an important and contributing factor to establishing trust between the two countries. The cooperation between vietnam and the United States over the past 20 years is in the right direction and brings about benefits to both people. It is beneficial for peace cooperation, stability and the asia pacific and the world. This is the result of hard work by the leaders and people of both countries in a series of putting behind the past, overcoming differences, maximizing commonalities and looking to the future. This is also an example for the relations between two countries with different political backgrounds that used to be adversaries in the past which is conducive to the peace and cooperation of the times. Id like to take this opportunity to thank all states men, organizations and individuals from both vietnam and the United States. With support and hard work has made significant contributions to promoting friendship and cooperation to the two countries. My special thanks to american friends who have been actively assisting vietnam to overcome the of war and those who stand by our side to support the National Development and National Defense of our country. Regarding vietnam policy extended relations policy, ladies and gentlemen this requires otherwise to be exposed to new ways of thinking and new ways of action. Scientific and technological advances, cooperation and Development Trends are opening up new opportunities for prosperity and Cooperation Among nations. Economic and financial crisis along with social and humanitarian ones post new commands for Sustainable Growth model for economic relationship between nations and for the International Economic order. Traditional and nontraditional security challenges including among others territorial disputes, Cyber Security aviation and Maritime Security has emerged in new forms affecting international peace, stability and development and requiring new mindsets and approaches to security. Environmental and economical Climate Change natural disasters continue to unfold with plexty, causing new command for peoples way of life and for managing human relationships with neighbor in a globalized world where interdependent is increasing both in terms of development and security. International law, Mutual Respect and Cooperation Among nation must be upheld more than ever before