Toubani Resources Ltd T.TRE

OSC Madoff Exemption ponzi hearing

[spring2010]

Canadian Derivatives and Clearing Corp hearing for the Madoff Exemption shows just how stupid the Ontario Securities Commission is about how a bear raid works.In the slang of Wall Street these married puts are known as “bullets.” Through their maneuverings, the option market maker and hedge fund manager synthesize a naked short position that puts “bullets” into the hands of the hedge fund. The hedge fund fires those “bullets” at the stock to make it collapse, timing the last “bullet” to fire as the hedge fund’s put option expires profitably. If the option position nears expiration and looks like it will expire at a loss (“out of the money”), the hedge fund manager goes back to the option market maker, and together they reload by synthesizing more “bullets.”Until recently, this behavior flourished owing to a rule called the “options market maker exemption” which is said to have been enacted thanks partly to the pleadings of a “prominent” market maker and investor named Bernard Madoff, who had considerable influence at the SEC. Madoff also obtained an exemption allowing market makers to sell short on a down-tick. The SEC was so grateful for his help in this regard that the commission named the new rule the “Madoff Exemption.” This was before Mr. Madoff became famous for orchestrating a $50 billion Ponzi scheme with help from the MafiaMadoff is in jail for his Ponzi but his legacy thrives because of ignorant regulators who can't understand the markets they regulate.https://dealbook.nytimes.com/2008/12/17/if-only-the-sec-had-taken-madoffs-advice/he Wall Street Journal looked into some of these firms and found some annoyance, particularly because investors who have shorted the stocks couldn't get their money out, even though they made the right bet. Application fee of less than $4000 is about as cheap as Globe not allowing comments for legal reasons. Too bad the OSC is too cheap to spend the time to read how Alfred Little was the PUDA short seller who profited from the SEC hearing to approve the Madoff exemption Milberg LLPhttps://www.osc.gov.on.ca/documents/en/Proceedings-OTH/oth_20110912_sino-forest.pdfOSC should just go back to watching porn like the SEC if they want to be useful as they just stated $4000 will get a short seller millions via a synthetic trade hearing. Who needs sino-forest fraud or Bernie Ponzi when you have regulator than are more corrupt?