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.

Read the full post on LinkedIn