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Why is it a felony for CFTC commissioners or employees to trade futures or options?

  • Post #1
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  • First Post: Jun 22, 2007 4:41pm Jun 22, 2007 4:41pm
  •  The Fxorce
  • Joined Feb 2007 | Status: AKA Gatersaw | 386 Posts
I don't understand why CFTC employees cannot trade futures or options on futures. This is like saying my employees cannot shop in my store.
It really is that easy.
  • Post #2
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  • Jun 22, 2007 5:07pm Jun 22, 2007 5:07pm
  •  bluebuddha
  • | Joined Apr 2007 | Status: Nobody™ | 356 Posts
Actually, a better analogy would be a USDA/FDA inspector can not buy food at a farmer's market.

But yeah... it does seem a little odd. I wonder if it's the same with SEC employees and stocks? Don't think it is.

Now if you are registered as a broker, RIA, etc. with Series whatever license with the SEC/NASD, I know that you have to tell your broker this, and they wind up charging you a higher rate for commissions and live data feed.
 
 
  • Post #3
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  • Last Post: Jun 24, 2007 9:41pm Jun 24, 2007 9:41pm
  •  Enroth
  • | Joined Mar 2006 | Status: Member | 46 Posts
I work in a casino and am not allowed to gamble there or at any other casino withn the group. The reason is potential conflict of interest. It means a whole raft of potential problems are avoided. My guess is the CFTC has a similar rationale. It avoids any risk of impropiety and loss of confidence by the public in the institution that could potentialy arise.
 
 
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