I laughed out loud when I read this paragraph from a Risk Magazine article about futurisation in the energy markets:
Top CFTC officials [GiGi? Is that you?] as well as members of Congress who supported Dodd-Frank [that’s Frankendodd around here, buddy] have repeatedly said the law was not aimed at physical end users of derivatives. But if the the flight towards futures causes liquidity elsewhere in the market to dry up, end-users might have no choice but to fall in line.
Look: Elvis Costello’s “My aim is true” is definitely not the theme song of regulators and legislators in the US, or anywhere for that matter. A 16 year old, hopped up, Afghan jihadi sprayin’ and prayin’ with his AK on full auto is more discriminating in his targeting than most regulators, and regulations. Unintended consequences-AKA collateral damage-are the rule, rather than the exception with regulations. This goes N-fold for monstrosities like Frankendodd.
Frankendodd is just starting its rampage. The energy derivatives markets-and end-users in them-are only the first victims.
So when a regulator or legislator says that a particular reg or law isn’t aimed at you, don’t take comfort: take cover; there will be incoming. We’re not talking Sergeant York or Annie Oakley behind the trigger here. More like Blind Lemon Jefferson.