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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (416)	10/6/1998 1:34:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 2794

But we did bring out the essence of the problem of regulating derivatives. You can't enforce it because even you and I could set up an arbitrage/hedge fund using several brokerages and whereas we can't get the leverage and therefore the return, we can conduct fairly extensive operations. The SEC, etc., simply can't piece together all trades and discern which are offsetting which. The only thing that can be done is a change in SMA or rules created electively by banks on an individual basis. In fact, this system already exists and it is far more robust than the media would have you believe. It will take some extraordinary event to expose any further system risk from this kind of financial operation. Agreed. Enough said.