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Tag Archive | "Brooksley Born"

Managed Futures Investor Protections Deserve National Spotlight

Thursday, July 15, 2010

1 Comment

The CFTC and its regulatory oversight structure (with the NFA) deserves national attention, something for the equity world to follow. For example, the bedrocks of "Bernie Madoff-like" fraud prevention -- account segregation, counter party surveillance and general transparency – warrant a national spotlight in how they have successfully thwarted fraud in managed futures, the primary investment opportunity to spawn from the futures and options markets. Intelligent regulation has generally provided the asset class legitimacy through performance auditing and requiring adherence to strict business standards. No investment is perfect. But these bedrock fraud prevention methods...

WHAT GOES AROUND COMES AROUND: CONGRESS CONSIDERS REGULATING MORTGAGE DERIVATIVES

Friday, July 2, 2010

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"But here is the punch line: The regulation doesn’t touch what are likely the next commodity crises (note the plural on crisis). Forget the fact that the long only commodity ETFs could be a volcano ready to explode on the supply and demand commodity ecosystem. The issue is “Bernie Madoff-style” hedge fund fraud: it will happen again. And this is unnecessary."

What They Are Saying About the Book:

“Mark Melin has written an authoritative and insightful book on managed futures. All investors who seek to diversify portfolio risk should have this on their bookshelf.”

— Dr. Hossein Kazemi , PhD, CFA; Program Director, Chartered Alternative Investment Analyst (CAIA) Association; Editorial Board, The Journal of Alternative Investments; Professor of Finance, University of Massachusetts, Amherst

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Key Book Excerpts

-From Chapter 11:

"To a nonsurfer, the brutal image of a shark attack, someone’s vibrant soul being ripped apart from flesh and body while the mind is still active, is a horrifying risk, enough to scare certain people away from the unknown of that which lies beneath. But the funny reality is that, on a cold statistical basis, there is a greater past probability of serious injury in the L.A. county beach parking lots than any injury inflicted from a shark attack. But never say never. Shark attacks, like investing risk, can surprise."

To read additional excerpts, click here.

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High Performance Managed Futures is the book for the managed futures industry, including commodity trading advisors (CTA), commodity pool operators (CPO) and other managed futures hedge funds, ETFs and managed futures mutual funds, authored by Mark H. Melin