Better yet what did the government Net? [more]
J.P. Morgan Manipulation Loophole in financial regulatory reform bill
It is no longer illegal to trade many uncleared swaps. Violating is now risk-free and legal.
Here is a loophole one should consider before they double down
[Name Withheld], our concerns are summarized below. Please tell us whether or not these serious flaws can be addressed.
The central tenet of Title VII of the Dodd/Lincoln bill regulating OTC derivatives is the requirement that, except for the end user provision, all standardized swaps must be cleared and exchange traded. Within that regulatory infrastructure is the subsidiary point that to be exchange traded, a swap must first be cleared.
However, the substitute amendment contains a major loophole – there is no consequence for counterparties who enter into uncleared swaps even after a finding by the CFTC or SEC that the swaps must be cleared. SA 3739 does not prohibit the use of uncleared swaps and, even more egregious, expressly states that no swap can be voided for failure to clear. SA 3739 needs to be amended to: 1) prohibit the use of uncleared swaps that are not otherwise exempt from regulation, e.g., the end users provision; and, 2) make swaps that do not clear be unlawful and unenforceable.
While page 566 of SA 3739 requires counterparties to submit all swaps for clearing, it does not address the issue of a swap that is submitted but rejected by a DCO. There is already a major problem with existing swaps clearing facilities rejecting fully qualified swaps participants from clearing. The explicit authorization to evade clearing establishes a perverse incentive for clearinghouses to be even more discriminatory in accepting swaps for clearing.
Moreover, the substitute amendment, now on the Senate floor, prohibits the CFTC from forcing a DCO to accept a swap for clearing (see page 574). Since clearinghouses have no incentive to list a swap that regulators deem must be cleared, and there is no consequence for trading an uncleared swap, counterparties are likely to exploit this loophole and continue to use uncleared swaps in an unregulated marketplace.
Further, Section 739 states that a swap that does not clear may not be deemed void or unenforceable. The lack of an express ban on uncleared swaps, coupled with Section 739, converts the clearing requirement into a mere suggestion. In fact, since Section 739 emanates from the highly deregulatory Commodity Futures Modernization Act of 2000, there is precedent for a court to rule that a swap that violates the mandates of the Commodity Exchange Act may, nevertheless, be enforced.
[Name Withheld] [more]
Who destroys shareholder value like Mr. Xiaochun Wang Chairman and management team like Tongjitang Chinese Medicines Co.? Mr. Xiaochun Wang failed aquisition last year cost the company 2 million last year that he still needs to pay back. Interesting tax base and Liquor Co purchase that has yet to hit the books [more]
Oral Dawe, CEO of Asia Pacific commodities at J.P. Morgan, commented that: "The opening of this facility reinforces the long history and commitment of J.P. Morgan to the precious metals business, and to the Asia-Pacific region, where the demand for world-class commodity trading and risk management continues to grow in line with the region's natural demand for commodities." [more]
Toronto Stock exchange only list the top 20 short positions....
Anyone know where to find the short positions for the Toronto Stock Exchange?
IIROC should make this their priority!