As the new world turns to DeFi & bank sponsored “DAO’s” – the old world reminds us why we need them. From reports: “JPMorgan Chase has agreed to pay nearly $1 billion to settle charges of manipulative trading of US Treasury securities (brought by the US CFTC and the SEC) The fines consist of a record CFTC fine of $920.2 million and a $35 million SEC fine. The CFTC charged JPMorgan Chase and its subsidiary J.P. Morgan Securities LLC for “manipulative & deceptive conduct” as well as for “spoofing” over the course of at least 8 years.” JPMS is the old Bear Stearns.
“Spoofing is an illegal form of market manipulation intended to create the belief there is a large demand to buy or sell a certain asset. This is done by placing large orders to buy or sell a financial asset & then canceling the order just before the trade is executed. The CFTC said JPMorgan had done this hundreds of thousands of times with precious metals & US Treasury futures contracts on NYMEX, & CBOT.”
The world clamors for yield. Better data on private markets, with third party marks is what LP’s need to move beyond zero-interest rates on the bond side. sDAOs will make spoofing impossible, and open the door for moving in and out of the capital stack of private market assets.
