Does abbreviated industry jargon complicate things?
We're all guilty of speaking in acronym-infested tongues. Like every industry – technology, automotive, healthcare – the financial/securities industry is stippled with abbreviations and jargon. The intent is to make communication easier, but one may argue that securities-related communication should come with an Acronym Glossary…or a Little Orphan Annie Decoder.
With Dodd-Frank, we have a whole new slew of acronyms to digest, such as OLA - Orderly Liquidation Authority and FSB - Financial Stability Board. This is not a new phenomenon. Regulation has bred new acronyms for decades. The 1930’s brought us letter combinations that are now common rhetoric: FDIC, SEC, FHLB and FHA.
This WSJ article
from last week pokes fun at the issue. For instance, Securities Industry and Financial Markets Association (SIFMA - there's another one) EVP Randy Snook is pushing for a consistently applied new legal identification system for financial firms. Great! But his actually quote was laden with insider buzzwords "It is critically important that the FSOC
coordinate disparate LEI
efforts taking place across regulatory agencies." My acronym: LOL.
Time will tell which new Dodd-Frank inspired abbreviations will remain obscure, which will become extinct due to re-regulation before implementation of legislation (jargon can rhyme too), and which will become part of the common corporate lexicon.
OMG, TGIF! TTYL…