5 ms·

I think this is illegal. This is effectively a CFD, which are absolutely illegal in the US regulated or not. https://en.m.wikipedia.org/wiki/Contract_for_diffe

by ethn 5y ago

I think this is illegal. This is effectively a CFD, which are absolutely illegal in the US regulated or not. https://en.m.wikipedia.org/wiki/Contract_for_difference https://en.m.wikipedia.org/wiki/Contract_for_difference

syrrim 5y ago
Your reference says they are illegal only on regulated markets in the US.
- arcticbull 5y ago
  Regulation S requires US persons no matter where they live to only trade at SEC regulated exchanges. [1] So broadly speaking it applies to all US persons - residents and citizens regardless of place of residency. I suspect accredited investors can do as they please though, but that's only a guess. [1] https://www.law.cornell.edu/cfr/text/17/230.903 https://www.law.cornell.edu/cfr/text/17/230.903
- SideburnsOfDoom 5y ago
  > they are illegal only on regulated markets How on earth would your take-away from that be that be "oh, in that case it's perfectly legal on all the _unregulated_ markets" ? That not how regulation works, at all.
  - herbst 5y ago
    Because literally the far majority of the world is what you call 'unregulated' just because US people are excluded does not at all make this illegal for anyone else.
anonymoushn 5y ago
Does this mean that Archegos and all its counterparties were not permitted to trade CFDs?
- rawtxapp 5y ago
  It's not illegal for hedge funds.
- ruggeri 5y ago
  I believe Archegos bought total return swaps. Those are different from CFDs, but I'm not sure how different they are. I'm not sure why one would be illegal (like CFDs are) and one would be legal (like total return swaps).
tgsovlerkhgsel 5y ago
Do they have a fixed end date? If not, it sounds more like other kinds of derivatives (legal if regulated, which this isn't).
0x008 5y ago
Well they are legal in most other parts of the world, so what does that tell us? Is a block chain a national thing?

5 ms·

I think this is illegal. This is effectively a CFD, which are absolutely illegal in the US regulated or not. https://en.m.wikipedia.org/wiki/Contract_for_diffe

by ethn 5y ago

syrrim 5y ago
Your reference says they are illegal only on regulated markets in the US.
- arcticbull 5y ago
  Regulation S requires US persons no matter where they live to only trade at SEC regulated exchanges. [1] So broadly speaking it applies to all US persons - residents and citizens regardless of place of residency. I suspect accredited investors can do as they please though, but that's only a guess. [1] https://www.law.cornell.edu/cfr/text/17/230.903 https://www.law.cornell.edu/cfr/text/17/230.903
- SideburnsOfDoom 5y ago
  > they are illegal only on regulated markets How on earth would your take-away from that be that be "oh, in that case it's perfectly legal on all the _unregulated_ markets" ? That not how regulation works, at all.
  - herbst 5y ago
    Because literally the far majority of the world is what you call 'unregulated' just because US people are excluded does not at all make this illegal for anyone else.
anonymoushn 5y ago
Does this mean that Archegos and all its counterparties were not permitted to trade CFDs?
- rawtxapp 5y ago
  It's not illegal for hedge funds.
- ruggeri 5y ago
  I believe Archegos bought total return swaps. Those are different from CFDs, but I'm not sure how different they are. I'm not sure why one would be illegal (like CFDs are) and one would be legal (like total return swaps).
tgsovlerkhgsel 5y ago
Do they have a fixed end date? If not, it sounds more like other kinds of derivatives (legal if regulated, which this isn't).
0x008 5y ago
Well they are legal in most other parts of the world, so what does that tell us? Is a block chain a national thing?