Or In Other Words.....................
WASHINGTON ( Land Of Make believe )
(Reuters) - In a long-awaited report set for release next
week, U.S. regulators will conclude that the multi-trillion dollar
market in privately-arranged financial derivatives does not need
government regulation, people familiar with the report said.
( We believe it goes against the very essence of capitalism)
The regulators will tell Congress that so-called over-the-counter, or
OTC, financial derivatives should not be subject to U.S. futures laws,
they said. Derivatives are investments whose values are linked to
underlying factors such as interest or exchange rates.
( Or gold or wheat or the price of tea in China )
Market participants have worried for years that U.S. futures regulators
might try to assert jurisdiction over the currently-unregulated OTC
market, which could have thrown the legal enforceability of widely-used
derivatives contracts like swaps into question.
( Badges?Badges!! We don't need no stinkin BADGES!! )
A working group of U.S. regulators, including the Federal Reserve,
Treasury, Securities and Exchange Commission and Commodity Futures
Trading Commission (CFTC), has been studying the issue for over a year.
Congress will use their findings in a rewrite of U.S. futures laws due
to be completed next year.
( The Brady Bunch ? )
The regulators decided that the sophisticated, usually institutional,
investors who use financial derivatives to manage risk do not need the
same sort of protections as small investors in exchange-traded futures
markets, the people familiar with the report said.
( They need no protection -- Just bail-outs RE: LTCM )
The CFTC, which regulates U.S. futures trading, last year caused a furor
when it issued a study that suggested it could claim authority over the
OTC market. The study was bitterly opposed by other U.S. financial
regulators.
( Bitterly? Yes...like when you take the candy away from a child who would die gorging on it if left alone )
Under its new chairman, William Rainer, the agency has reversed course,
apparently allowing the working group to reach a consensus.
( That new chairman did a REAL GOOOOD JOB Fer Usin Fellers)
``The national interest in fostering economic efficiency in the OTC
derivatives market can only be accomplished by establishing clear legal
certainty for the over-the-counter market,' Rainer said in a speech
Thursday, adding that U.S. futures laws were ``not designed to regulate
the OTC market.'
( The National Interest? HUH? )
AMERICA INC.
The working group does recommend that commodity derivatives remain
subject to futures laws and the CFTC's jurisdiction, the people familiar
with the report said.
( Yep...But you still don't have to REPORT ANYTHING!! )
The group also focused on the use of centralized clearing houses for
financial derivatives as a way of mitigating the economic risks
associated with the OTC market, they said, leaving open the question of
their future regulation.
( Whatever )
Traditional U.S. futures exchanges have long complained that the OTC
market has been eating into their business, and the group will back a
CFTC initiative to deregulate financial futures trading to allow them to
compete on a more level playing field, the people familiar with the
report said.
( YA! We wanna play in the DARK too.DEREGULATE EVERYTHING. )
``The CFTC's regulatory policy must ensure that there is a balance
between the regulatory environment for OTC derivatives and the level of
regulation applied to the financial futures markets,' Rainer said
Thursday. ``These markets are simply too important to the nation's
economy to ignore the potential damage from disparate regulatory
structures.'
( Disparate? Isn't that when Law Enforcers realize they have
lost control and Enforce MARSHALL LAW ?Must be gone too far to do anything about I guess )
Congressional aides said Friday they expected the report to be completed
next week.
( We await the report. NOT!! )
OK...so remember folks....anything goes now.The global community has received the message LOUD AND CLEAR )
WE ARE AMERICA -- WE CAN DO A-S W-E P-L-E-A-S-E
Have a nice day
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