congress closes the 'enron loophole'

[david austin]

guess we will find out whats really moving oil prices over the next few weeks.

[jaesun]

Demand exceeding the available supply?
Eco-fags saying we can't drill our own even though oil drilling has become safer for the planet then ever before?
Greedy coutries stockpiling oil reserves driving up the cost of what is out there?
China's usage?
India's usage?

[david austin]

Originally Posted by jaesun

Demand exceeding the available supply?
Eco-fags saying we can't drill our own even though oil drilling has become safer for the planet then ever before?
Greedy coutries stockpiling oil reserves driving up the cost of what is out there?
China's usage?
India's usage?

not saying those arent factors.

do some research on 'enron loophole'

its quite a large manipulation factor that many believe have added to the technical side of the recent run.

[PETA]

Originally Posted by david austin

do some research on 'enron loophole'

why the hell would I want to do that when I can ask you to explain your vague reference?

So, what's the enron loophole?

[djetaine]

1. Close the ENRON LOOPHOLE

In 2000, Enron lobbyists seeking to exempt energy commodity trading from federal oversight were successful in passing the “Enron Loophole.” Enron exempted energy trading from federal commodities laws pertaining to certain types of trading environments, such as electronic environments. Virtually overnight, the loophole freed over-the-counter energy trading from federal oversight requirements, opening the door to excessive speculation and energy price manipulation. While Enron is long gone, its legacy remains. It is time to put “energy” back into federal law where Enron had it removed, and close the loophole once and for all!

[david austin]

the quick...

there are fed regulations in place on commodity trades but the cftc (commod and futures trading commision) is a) way undermanned to really police even what happens at the nymex and b) couldnt enforce trading on other world exchanges such as the ICE (intercont exchange)

so basically if a hedge fund/speculator was found to be manipulating pricing based on massive movements triggered by the CFTC they could simply move the positions through other non-regulated exchanges.

this closure of the 'enron loophole' creates complete transparency among markets requiring a five year trading trail that can be audited effectively. what this record establishes is what these massive funds trades are based on. and if they are found guilty of manipulation they can be effectively punished and that wont include the ability to just shift the contracts to another exchange. the key is that this closure represents a joint effort among all trading exchanges to work together under one umbrella that can effectively be policed by the cftc.

interestingly enough this also opens the doors to the govts willingness to start doing a much better job of monitoring price manipulation that is starting to show up in basic security markets via 'darkpools'

[PETA]

Originally Posted by david austin

the quick...

there are fed regulations in place on commodity trades but the cftc (commod and futures trading commision) is a) way undermanned to really police even what happens at the nymex and b) couldnt enforce trading on other world exchanges such as the ICE (intercont exchange)

so basically if a hedge fund/speculator was found to be manipulating pricing based on massive movements triggered by the CFTC they could simply move the positions through other non-regulated exchanges.

this closure of the 'enron loophole' creates complete transparency among markets requiring a five year trading trail that can be audited effectively. what this record establishes is what these massive funds trades are based on. and if they are found guilty of manipulation they can be effectively punished and that wont include the ability to just shift the contracts to another exchange. the key is that this closure represents a joint effort among all trading exchanges to work together under one umbrella that can effectively be policed by the cftc.

interestingly enough this also opens the doors to the govts willingness to start doing a much better job of monitoring price manipulation that is starting to show up in basic security markets via 'darkpools'

so really quick....

would permit federal regulation to determine of speculatrs were using large trades to artificially influence price?

[david austin]

Originally Posted by xian

would permit federal regulation to determine of speculatrs were using large trades to artificially influence price?

wat?

[Sinner]

Originally Posted by david austin

wat?

lol

[PETA]

Originally Posted by david austin

wat?

this would allow regaulation which would attempt to prohibit speculators from influencing the price of oil?

[david austin]

it would allow regulation across the exchanges to limit questionable movements.

there are daily limits on the nymex but before this bill a trading desk could simple move to the ICE and keep buying unregulated to the CFTC.

it also would show transparency if a trading desk is trying to pump a contract that it had no intention of taking delivery of.

basically like a pump and dump on a security. while technically not illegal as it happens daily... it would give further evidence to desks moving vast amounts of contracts based on pure speculation.

[PETA]

you use so many words....

[david austin]

answer - yes

better

[PETA]

much

[Dionysos]

Originally Posted by xian

you use so many words....

Somebody call Webster, I've got a new definition of irony for them.