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Sorry Phil, the CFTC was set up in 1974-1975 in response to a nationwide
scandal involving a Boston based firm. This firm sold london options for
outrageous prices to people who didn't understand them and who could not
afford to lose. They were very high pressure and bilked a lot of people. This
was before options on commodities were legal in this country.
The Boston newspapers picked up on this and the reporter for the Boston Globe
won a Pulitzer.
The CFTC was formed by an act of congress to combat these types of scams.
Advisory Committees were formed and I was honored to serve on the Advisory
Committee for Trading Professionals. The committee decided strongly that the
most important safeguard for the public was full disclosure. That's why I
helped to write the risk disclosure rule in plain english and not legalese.
Neither the committee or the CFTC thought it should determine who can trade
commodities. To this day, there are NO suitibility requirements as far as the
CFTC is concerned. The FCM makes that based on a business decision.
There was no CFTC in 1929. You are probably referring to the CEA. They did
not do the job well enough so the CFTC was created.
As far as attacking free speech, that's exactly what the case is about. The
CFTC requires a license PRIOR to writing, speaking, or mailing anything about
commodities or futures.
Incidently, I am registered (AP, IB) and am a member of the NFA. I have
nothing to gain except far play as far as this case is concerned.
Lastly, I suggest that you never assume what the government regulatory
agencies are capable of doing.
Regards,
Manning Stoller
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