Frank-Dodd Act and July 15th, 2011

vibr0nic · June 19, 2011 3:00PM

Has this been discussed on the board? I did a search for Frank-Dodd and did not get any results.

Link

I cannot find any website that discredits the information on the top link.

Is this true? If so, what are the implications for PM values?

Seeking Alpha article on Frank-Dodd Act

Trick Question - Can you find July 21, 2010 on the graphs below? That's the date when the Frank-Dodd Act was signed.

OzzyAndy · June 19, 2011 8:16PM

I got an email from CMC markets (a CFD marketmaker) today telling me gold and silver contracts won't be available soon.

jmski52 · June 19, 2011 10:59PM

I've read a few commentaries on this, and I've read through the language as well. It is very hard to know what regulations are going to be spawned from the law, but the least destructive interpretation that I've seen is that they are simply trying to reign in accounts that speculate on 10:1 leverage and above.

Of course, I've also read that at least 2 firms are not going to be offering futures trading in gold & silver now.

Does anyone have a bead on this yet?

I'm wondering if today's down market action is the result of these articles being released over this past weekend?

jmski52 · June 19, 2011 11:22PM

Silver just took the "up" elevator about $0.60!!! Goes to show, you never can tell!

roadrunner · June 19, 2011 11:49PM

Whatever otc trading vehicles get taken away will just cause those traders to look at other exchanged-traded vehicles and increase their demand...such as the Comex, GLD, SLV, GDP, AGQ, GDX, GDXJ, PHYS, CEF, etc. Or those players might find similarly highly leveraged otc vehicles in overseas markets to replace them.

roadrunner

vibr0nic · June 20, 2011 2:25AM

<< <i>Whatever otc trading vehicles get taken away will just cause those traders to look at other exchanged-traded vehicles and increase their demand...such as the Comex, GLD, SLV, GDP, AGQ, GDX, GDXJ, PHYS, CEF, etc. Or those players might find similarly highly leveraged otc vehicles in overseas markets to replace them.

roadrunner >>

Thanks rr. So, are you suggesting these rules will basically have minimal impact on prices and volatility?

Coyn · June 20, 2011 4:10AM

<< <i>Thanks rr. So, are you suggesting these rules will basically have minimal impact on prices and volatility? >>

It's what we already know, the rules don't apply to the big guys, they always find a way around them even if they have to move the trades overseas.

CaptHenway · June 20, 2011 4:53AM

Please see the ICTA thread on this law.

roadrunner · June 20, 2011 11:13AM

Thanks rr. So, are you suggesting these rules will basically have minimal impact on prices and volatility?

I don't know. But it seems to be the first shot across the bow to get J6P out of trading highly leveraged commodity contracts. Old Joe might just have to stick to trading bullion or
mining stocks for starters. Supposedly doesn't affect the Comex, but who knows where it's all heading. The effect on the US bullion coin market should be negligible compared to the paper markets. J6P is being herded, but for exactly what remains to be seen.

roadrunner

Goldbully · June 20, 2011 11:41AM

<< <i>Has this been discussed on the board? I did a search for Frank-Dodd and did not get any results.

Link

I cannot find any website that discredits the information on the top link.

Is this true? If so, what are the implications for PM values?

Seeking Alpha article on Frank-Dodd Act

Trick Question - Can you find July 21, 2010 on the graphs below? That's the date when the Frank-Dodd Act was signed.

>>

Did you try Frank Dodd???