monk

Coming Soon: A Central Clearing House for Credit Derivatives

Very interesting, Mandate OTC to exchanges? Time could not be better!

U.S. Commodity Futures Trading Commission to Hold International Market Surveillance Conference, August 5-7, 2008

CFTC to Host International Regulators at Conference
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) will host its first ever market surveillance conference for international regulators August 5-7, 2008 in Washington, DC.

Senior regulatory officials from nine jurisdictions, including leading emerging market jurisdictions such as India and China, will discuss key elements of futures trading oversight, including market and financial surveillance. In addition to highlighting the CFTC’s large trader reporting system, the CFTC will share new surveillance techniques and information about how to design futures contracts that are not susceptible to manipulation.

“This is a critical time for futures regulators around the world,” said CFTC Acting Chairman Walt Lukken. “During this time of volatile and global futures markets it is ever so important that regulators share surveillance approaches, enhance cooperation and coordinate market oversight.”

“This three-day program is designed to share best practices for market monitoring and strengthens partnerships with our overseas counterparts,” said CFTC’s Director of International Affairs Jacqueline Mesa. “Regulators around the world share the same goals to ensure market integrity and customer protections. Building on these shared goals, the CFTC will explain necessary tools and techniques to stop abuses and address them in real-time.”

This conference is for international futures regulators only and is not open to the public.

Coming Soon: A Central Clearing House for Credit Derivatives

need?? Investors:: refer to the group of investment banks that are threatening to start from scratch an operation (exchange) to clear the $ trillions notional amount, OTC transactions (currently not exchange traded - a real mess!) via a 3rd party - arms length "exchange" - thus making OTC trades more transparent (consistent settlement days, pricing monitored by a 3rd party - etc,) Problem is these "investors" (investment banks) have no domain expertise and have proven time and time again that the SRO's responsible for policing investment banking services somehow get in bead with the investment banks and the next thing you know the exchange looks like a fraternity party.

Coming Soon: A Central Clearing House for Credit Derivatives

Yes THANK YOU! Apologize a late night error
LETTING THE * INVESTMENT BANKS* SET UP AN OTC MARKET THAT IS UNPROVEN (FOR INVESTMENT BANKS) AND EXTREMELY IMPORTANT IS LIKE LETTING A FOX GUARD THE HEN HOUSE.



- The investment banks have proven incapable of policing themselves - Thus any major ownership of an exchange OTC etc would not create a true bona-fide transaction as exhibited by the recent Auction Rate Securities alleged Fraud and BSC's lack of "arms length transactions" between BSAM and BSC - a real sham IMHO (online.wsj.com/public/...) THE LIST GOES ON AND ON.

Coming Soon: A Central Clearing House for Credit Derivatives

Thanks for the update! It would have been nice to wake up and have the BSC ordeal turn out to be bad dream! It's clear the FED wants to wake up without nightmares that cost the U.S. taxpayer.

The recent testimony of many industry participants on the "Hill" = coupled with the FED's mandate that all OTC transactions be totally transparent = Leaves only ONE viable solution. It's self evident that the CME is the only organization with the size and talent to transform an antiquated OTC market into a reliable and quantifiable marketplace:

To sum it up:

CME plays Transparency
Investment Banks play Hide and Seek

CME has clearing for OTC with pricing and daily position netting ready to "Plug and Play"
Investment Banks are unable to balance the books

CME has a strong capital position
Investment Banks are passing around the hat

CME has proven management that lives and breathes the business
Investment Banks have a revolving door, hired hand policy

CME, one of few financials that can and thus is being shorted - Wonder Who?
Investment Banks apply Voodoo Naked Monkey Motion to keep shares up

THE SELLING PRESSURE ON EXCHANGE STOCKS IS AN UNWARRANTED SINISTER ATTEMPT TO MAINTAIN A DESTRUCTIVE "STATUS QUO".

LETTING THE EXCHANGES SET UP AN OTC MARKET THAT IS UNPROVEN AND EXTREMELY IMPORTANT IS LIKE LETTING A FOX GUARD THE HEN HOUSE.