Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (396047)	10/17/2009 10:55:32 PM
From: Real Man	Respond to of 436258

The intro is worth reading, pp. 8-9. Madoff stuff. Exempts da multi-trillion dollar derivative boyz from any kind of regulations. Netted derivative positions are paired long and short positions, like strings on a puppet (da market) You pull one of 'em, and da market goes where u want it to go. U profit. I mean, Goldman does. -g- Specifically, with respect to OTC derivatives, the Working Group is unanimously recommending: · An exclusion from the CEA for bilateral transactions between sophisticated counterparties (other than transactions that involve non-financial commodities with finite supplies); · An exclusion from the CEA for electronic trading systems for derivatives, provided that the systems limit participation to sophisticated counterparties trading for their own accounts and are not used to trade contracts that involve non-financial commodities with finite supplies; · The elimination of impediments in current law to the clearing of OTC derivatives, together with a requirement that any clearing system for OTC derivatives be regulated by the CFTC, another federal regulator, or a foreign financial regulator that satisfies appropriate standards; · A clarification of the Treasury Amendment that clears the way for the CFTC to address the problems associated with foreign currency “bucket shops” and excludes all other transactions in Treasury Amendment products from the CEA, unless they are conducted on an organized exchange; · A modification of the exclusive jurisdiction clause of the CEA to provide greater legal certainty to hybrid instruments; and · A statutory clarification of the inapplicability of the Shad-Johnson Accord to hybrid instruments that reference securities.