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macrocephalopod's profile
macrocephalopod
macrocephalopod
macrocephalopod
@macrocephalopod

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macrocephalopod

@macrocephalopod

Paul Allen, Vice President M&A, Pierce & Pierce (Sie/Hir) | Vegan | Silence is Violence | Women’s Rights Are Human Rights | ACAB (Assigned Cephalopod At Birth)

Joined December 2020

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    1. ONAN‏ @ONAN_OUS 29 Mar 2021

      Using swaps for synthetic exposure is a well-known technique but it sucks they will get regulatory scrutiny after all this. No more hiding positions from your 13-F. One bad apple has to spoil the game for all of us. (Disclosure I sold equity swaps on the GS synthetics desk)pic.twitter.com/L0fwZBwHeY

      4 replies 7 retweets 91 likes
      Show this thread
    2. ONAN‏ @ONAN_OUS 29 Mar 2021

      What happens next is regulators say any > 95-delta OTC derivative exposure to a stock or ETF has to be reported on the 13-F. Then the derivative salesmen go make decks to pitch replacing stock or total return swaps with 94-delta options on quarter-end, making them non-reported

      2 replies 1 retweet 36 likes
      Show this thread
    3. ONAN‏ @ONAN_OUS 29 Mar 2021

      These decks are only distributed in printed form, or they aren’t even decks, in person we say ‘we are told that there are other clients who are doing trades such as these but please consult your own lawyers, this is not legal advice’

      1 reply 0 retweets 28 likes
      Show this thread
    4. ONAN‏ @ONAN_OUS 29 Mar 2021

      No email, no deck, no recorded phone call, no record of a pitch, just a slight nudge and hopefully you generate a million or so of PnL to boost your year a bit

      4 replies 0 retweets 25 likes
      Show this thread
    5. macrocephalopod‏ @macrocephalopod 29 Mar 2021
      Replying to @ONAN_OUS

      I would simply convert all derivative positions into their single name delta equivalents and require them to be reported as if they were held physically.

      1 reply 0 retweets 0 likes
      macrocephalopod‏ @macrocephalopod 29 Mar 2021
      Replying to @macrocephalopod @ONAN_OUS

      ETFs? Report the holdings. Index futures? Report as if you held the index names. Autocallables on the index? Stick a finger in the air, guess a delta and report it. Of course no one will do this because lawyers and regulators hate math.

      3:50 AM - 29 Mar 2021
      • 1 Retweet
      • 4 Likes
      • Roko Technologies Ben BlankName G.H. Burns, CFA
      1 reply 1 retweet 4 likes
        1. New conversation
        2. ONAN‏ @ONAN_OUS 29 Mar 2021
          Replying to @macrocephalopod

          I don’t remember what regulation it was but there was going to be a delta test for some reporting or disclosure around the time I was doing this and I think it got killed when the banks said “this is literally impossible and infeasible to implement” but I have my sympathies

          1 reply 0 retweets 2 likes
        3. ONAN‏ @ONAN_OUS 29 Mar 2021
          Replying to @ONAN_OUS @macrocephalopod

          Also bullish on financial data stocks if every fund has to pay for index lookthru on every ETF they hold

          1 reply 0 retweets 3 likes
        4. Show replies

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