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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (44345)	10/30/1999 9:07:00 AM
From: Eashoa' M'sheekha	Read Replies (4) \| Respond to of 116760

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