Comment Text:
This is in regards to the following news release:
CFTC’s Division of Market Oversight Provides Temporary Relief from Large Swaps Trader Reporting for Physical Commodities
Washington, DC – The Commodity Futures Trading Commission’s (Commission’s) Division of Market Oversight (Division) today issued a letter providing temporary relief from the requirements of the Commission’s regulations regarding large trader reporting of physical commodity swaps (§§20.3 and 20.4). Because this is the first time that swaps data is being collected, this temporary relief is intended to provide sufficient time to enable both the industry and the Commission to develop and refine systems and processes that will be able to report these complex transactions.
On July 22, 2011, the Commission published large trader reporting rules for physical commodity swaps and swaptions. The rules require daily reports from clearing organizations, clearing members and swap dealers, and become effective on September 20, 2011. The letter issued today provides temporary relief from reporting, as long as parties are making a good faith attempt to comply with the reporting requirements, until November 21, 2011, for cleared swaps, and January 20, 2012, for uncleared swaps. Upon the conclusion of applicable relief periods, such reporting parties must become fully compliant.
My question is:
What does a good faith attempt to comply with the reporting requirements' mean? .....especially seeing as there is an ongoing INVESTIGATION INTO SILVER MANIPULATION. This CFTC release, the DAY BEFORE the smash on the silver and gold markets, allowed the banks to go beyond speculative position limits and effectively be given cover to go as unhedged short as they like. JPM apparently have 350 guys working on the ramifications of Dodd-Frank - imo clearly the class action lawsuit has them running for cover and they used their 'friends' at the CFTC to provide covering fire for them to try and exit as many shorts as possible before the (again delayed) speculative position limit changes come into play.
When is this going to be taken seriously and position limits established?
Thanks.
