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The Enron loophole has been closed and goes into effect on Sept 30, 2009 [View All]

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LSK Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Jun-19-08 10:04 AM
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The Enron loophole has been closed and goes into effect on Sept 30, 2009
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Edited on Thu Jun-19-08 10:55 AM by LSK
The Commodity Futures Modernization Act of 2000 or CFMA (Public Law 106554, 1(a)(5) , December 21, 2000, 114 Stat. 2763, 2763A365, 7 U.S.C. 1), was passed by the United States Congress and signed by President Bill Clinton in December 2000 in large part to allow for the creation of U.S. exchanges for the listing of a new sort of derivative security, the single-stock future.

The "Enron Loophole"

The CFMA has received criticism for the so-called "Enron Loophole," 7 U.S.C. 2(h)(3) and (g), which exempts most over-the-counter energy trades and trading on electronic energy commodity markets. The "loophole" was drafted by Enron Lobbyists working with senator Phil Gramm <1> seeking a deregulated atmosphere for their new experiment, "Enron On-line".

The prohibition on single-stock futures and narrow-based indices that had been in effect until the passage of this act was known as the Shad-Johnson Accord because it was first announced in 1982, as part of a jurisdictional pact between John S.R. Shad, then chairman of the U.S. Securities and Exchange Commission and Phil Johnson, then chairman of the Commodity Futures Trading Commission.

http://en.wikipedia.org/wiki/Enron_loophole




The Enron loophole fix has been included in the Farm Bill HR 2419: Farm, Nutrition, and Bioenergy Act which on May 22 was passed on a Veto override:
http://clerk.house.gov/evs/2008/roll315.xml and http://www.senate.gov/legislative/LIS/roll_call_lists/r...

SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX ISSUES.

(a) The Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve System, the Chairman of the Securities and Exchange Commission, and the Chairman of the Commodity Futures Trading Commission shall work to ensure that the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), or both, as appropriate, have taken the actions required under subsection (b).

(b) The SEC, the CFTC, or both, as appropriate, shall take action under their existing authorities to permit--

(1) by September 30, 2009, risk-based portfolio margining for security options and security futures products (as defined in section 1a(32) of the Commodity Exchange Act); and

(2) by June 30, 2009, the trading of futures on certain security indexes by resolving issues related to foreign security indexes.



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  -The Enron loophole has been closed and goes into effect on Sept 30, 2009 LSK  Jun-19-08 10:04 AM   #0 
  - I'm glad to see this finally getting some play  SoFlaJet   Jun-19-08 10:07 AM   #1 
  - Was featured on 'Marketplace' on NPR the other day  Richardo   Jun-19-08 10:10 AM   #4 
     - is this it?  JoeIsOneOfUs   Jun-19-08 02:50 PM   #22 
        - Yes!  Richardo   Jun-19-08 03:16 PM   #25 
  - Energy prices would drop 25% to 50% overnight with the stroke of a pen. n/t  IanDB1   Jun-19-08 10:09 AM   #2 
  - tax them 90%.. and its over... use the money for a national solar project>LINK>>  sam sarrha   Jun-19-08 10:09 AM   #3 
  - This was done already - in the farm bill  malaise   Jun-19-08 10:13 AM   #5 
  - did it pass or did it get stripped out?  LSK   Jun-19-08 10:15 AM   #6 
     - Highlights of the New Provisions  malaise   Jun-19-08 10:17 AM   #8 
        - I just found the bill text on thomas  LSK   Jun-19-08 10:18 AM   #9 
           - Why the fugg isn't this immediate? n/t  malaise   Jun-19-08 10:20 AM   #10 
              - that explains why prices have not gone down yet and may go higher this summer  LSK   Jun-19-08 10:20 AM   #11 
              - Yeah why should we have to wait a fucking year? 1500 out of every American's pocket before they  lonestarnot   Jun-19-08 11:04 AM   #21 
              - That's what I want to know too--Sept. 30, 2009 is over a year from now.  Raksha   Jun-19-08 03:38 PM   #26 
  - Olbermann did a whole segment on it last night  pink-o   Jun-19-08 10:15 AM   #7 
  - link to olbermann  skids   Jun-19-08 10:46 AM   #13 
     - yeah, I just saw it  LSK   Jun-19-08 10:47 AM   #14 
  - kick for revised title and information  LSK   Jun-19-08 10:44 AM   #12 
  - Is that September 9th of this year  malaise   Jun-19-08 10:52 AM   #15 
     - I just realized it says September 30, 2009  LSK   Jun-19-08 10:56 AM   #18 
  - Maybe someone can explain just what part of that text does what?  ThomWV   Jun-19-08 10:53 AM   #16 
  - I've been asking for help since last night  malaise   Jun-19-08 10:55 AM   #17 
  - try reading it like this:  LSK   Jun-19-08 10:58 AM   #19 
     - Thanks a million  malaise   Jun-19-08 11:02 AM   #20 
  - Why not do it NOW??  SoCalDem   Jun-19-08 02:54 PM   #23 
     - It makes no fugging sense n/t  malaise   Jun-19-08 02:55 PM   #24 
 

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