Singapore Moves to Make Trading Safer after MF Global

Singapore moves to make trading

safer after mf global

The United States has shown itself for what it really is - a cesspool of

corruption. This MF Global debacle is so serious, that it truly threatens

to destroy the United States as a fair and honest place to invest. With

$1.6 billion now missing and Judge Martin Glenn protecting the NY

Banking lot, real capital is turning elsewhere for security. Equities are

rising and the commodity sector is floundering. Support in the Dow lies

at 11650-11960 while resistance stands at 13500. The Dow has

exceeded the 2011 high. Gold has been unable to exceed the December

high. While much of the gold analytical crowd talk about the "paper

shorts" that exist in everything within the futures markets, without

those markets commodities would become disorganized and diverse

just as real estate lacks a central clearing house. We need a well-

defined market structure to encourage investment. It matters not what

commodity one talks about be it gold of Adzuki beans in Tokyo, people will ONLY invest based upon the

fact that they feel confident someone else will buy it. Gold has no value at all unless others accept it as

real. Everything is that way.

Interesting, where the corruption in the United States prevents the Regulators (SEC & CFTC) from

actually protecting investors, Singapore is doing what the US will NEVER do. The Monetary Authority of

Singapore (MAS) is aiming to revamp the way derivatives contracts are traded to reduce the risk of a MF

Global/Lehman Brothers-style disaster over there where the US Regulators will NEVER do the job. The

most important change will mean any trades in these complex derivative products will be cleared at a

central institution such as the Singapore Exchange (SGX). This will wipe out the US market and the only

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safe place will be Singapore. This seems to be falling perfectly in line with our computer model that

shows the Financial Capital of the World is shifting to Asia.

Singapore has become the most important derivatives market within Asia. The market there has

displaced the US and Japan and has reached about US$9.8 trillion (Singapore $12.3 trillion) a year. This is

an incredible market that has been dominated by foreign exchange, oil and debt markets. About US$700

trillion of such contracts are traded globally on an annual basis. With Singapore actually regulating

instead of being bought and paid for, it may become the new Financial Rome/Mecca.

With Singapore moving in the right direction after the USA has shown it is just an old-boy's network, the

regulatory developments on the management of OTC trading risks will without question begin to

increase the clearing business there. Singapore could be poised to steal the thunder from the United

States for Congress trembles in the face of actually reforming the bureaucracy. The SEC & CFTC will

never be merged and it will always be corruption as usual.

The reforms coming in Singapore will improve the transparency in the market and mitigate the systemic

risk for the parties involved should the failure of a counterparty happen again. With the NY courts as

corrupt as they are, legally clients will fare much better in Singapore than the United States since they

actually do obey their own laws. The vast majority of these contracts are traded on what is called the

over-the-counter (OTC) market and that creates the unregulated world that is capable to blowing up the

entire system taking down banks you never dreamed of. Singapore is stepping out front on this issue

and is poised for a major shift in capital from the West to Asia.

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