CFTC monitoring of banks and financial institutions – Impact on the MOASS

CFTC monitoring of banks and financial institutions – Impact on the MOASS

This information on CFTC Monitoring is an ongoing situation, and will be updated here as we get more information

The Commodities Future Trading Commission (CFTC) released a tweet on August 31 which has got many apes jumping up and down and generally making aggressive noises, and it’s worth taking a look at exactly what was said, and what it means for the inevitable MOASS.

So the CFTC’s tweet read “CTFC staff provides temporary no action relief from certain financial reporting requirements to bank swap dealers,” with a link to the commissions website where more details were given.

In full, the report said the following:

The Commodity Futures Trading Commission’s Market Participants Division today issued a time-limited no-action letter concerning capital and financial reporting obligations for swap dealers (SDs) subject to capital requirements of a prudential regulator (Bank SDs) under the CFTC’s SD financial reporting rules. 

Under the relief, in lieu of complying with the CFTC’s financial reporting requirements, and subject to certain specified conditions, Bank SDs may report utilizing certain alternative forms, filing deadlines and/or reporting standards that are otherwise applicable to them by their prudential or home country regulators. CFTC staff determined that providing the conditional relief on a temporary basis would not adversely impact its ability to monitor the capital position of Bank SDs to the extent of its obligation under the Commodity Exchange Act and CFTC regulations.

The no-action letter was issued in response to a joint request received from the Securities Industry and Financial Markets Association and the International Swaps and Derivatives Association on behalf of their SD members who are otherwise required to comply by October 6, 2021 with the CFTC’s newly adopted capital and financial reporting requirements. The relief granted by the letter would expire on the earlier of October 6, 2023 or the adoption by the CFTC of any revised financial reporting and notification requirements applicable to such Bank SDs.

CFTC report August 31, 2021.

What this means is that basically, as some commentators have noted is a massive middle finger to retail investors, as it allows banks a temporary stay from having to report certain required data… And by temporary, they mean 2 years!

So basically this means that Apes won’t get the data that we know is crucial if we are to understand exactly what’s going on in the market, essentially meaning it becomes way more difficult to get good information to be able to make informed trading decisions.

Many have said that this lack of CFTC monitoring is simply an egregious way for banks and financial institutions to hide their dodgy practises from the public, and effectively “kick the can down the road”. And it really does seem to go against the whole reason for having regulators in the first place, when you effectively know that massive criminal hedgefuckery is going on, but they can simply just hide the data that exposes them. Yes, it’s a joke. And of course, the mainstream media isn’t reporting it.

It’s worth also pointing out that the current director of Market Oversight at CFTC is Dorothy D. DeWitt, who previously held senior posts in legal and compliance at, wait for it, Citadel Securities, and recently was the General Counsel and a VP at crypto exchange Coinbase. What a shocker!

But the real question is, how will these CFTC Monitoring Shenanigans affect the MOASS?

However, despite the obvious question of criminal conspiracy amongst the ranks of the regulators, some more cooler heads have given a slightly different take on it all. Reddit user u/einfachman made the point that the CFTC Monitoring temporary no-action relief doesn’t stop the MOASS, because Shorts still need to cover their positions, but they may end up being less liable to receive criminal charges after the squeeze is squooze, as well as it being harder for Apes to see exactly what’s going on.

And king of DD Criand had the following to say on Reddit:

This is about reporting of swaps, so it won’t can-kick or delay anything. It’s just a lack of transparency. Personally nothing to worry about. But definitely something to poke at, because it’s kind of bullshit that they’re keeping things under a wrap.

They’ve probably made a shitshow since January with all of the zombie companies that have been bumping up alongside GME, AMC. And they don’t want people to see how fucked up everything is.


So the MOASS is still on, but we may be a little more in the dark about it…but then again, with everything happening in the Dark Pools (as confirmed by Gary Gensler et al), what’s new? We all know about the games they are playing, and we have become in many ways quite desensitised to the sheer level of trickster actions between the financial institutions, their puppet politicians and the media shills. Other than the so called ‘temporary stay’ on CFTC monitoring, what other trickery will be pulled by the dodgy triumverate of banks, government and media? It’s probably fair to say there’s more of this to come, maybe even before the MOASS kicks off in full swing.

Simulate and Trade has an interesting video on this.

Apes Army does not endorse any information in these Reddit posts, nor is anything here to be construed as financial information. Do Your Own Research always.