You are not serious ?! Which derivative buyers and sellers don't hedge themselves in the open exchanges? Perhaps other than the idiots at AIG, most participants will take positions through the market in order to maximize their gains and minimize their losses. Without the underlying structures in the market, no one would have taken a position in a derivative market in the first place. Think of it this way: if AIG, C, BAC, MS, GS, MER, LEH, BSC were private companies, very few in the general public would really care what happens to them.
With the growing interdependence of the world's economies....relying on efficiencies of capital becomes a paramount concern in terms of the most efficient product prices.... The world's exchanges need to be "de-fragmented" ....not only in terms of the much needed singular electronic direct access public highway.....but also with respect to regulation.... taxation.... and information.... This should be a "tax free" highway.... The countries in trouble need to restructure their tax policies in order to move towards better productivity and pricing.... ........................................................... Secondly....This highway represents a true means whereby no matter what country one lives in....one has the opportunity to protect their wealth in their own view....utilizing a true universal account.... Thirdly ....globalization betters its chances of success with such a highway.... Fourthly....Fairer wealth distribution is a real possibility....
What exchange traded derivatives caused this disaster? CDO's, CDS's, MBS's were not traded on the highly regulated exchanges. GS, MER, LEH, AIG, C, BAC, MS, BSC, ETC., were trading those instruments off exchange. So what if they traded some financial instruments that were traded on the exchanges, those instruments did not cause the problem is what I meant. I did not trade CDO's nor did I make risky loans nor did I default on my mortgage. Nor should I nor anyone pay a trans tax on a stock purchase or exchange traded derivative.
I heard from some industry guys that for every 100 black boxes.... 1 makes a TON of money... 10 make small profits... and the rest break even or even lose money after the cost of doing business is factored in. Plus there is a ton of maintenance and tweaking in a changing market.
90% of black boxes lose money? Doesn't sound right. Sound like they don't want you in on their game, so they scare you off with bs.