Anonymous ID: 5af486 Aug. 19, 2020, 10:30 a.m. No.10342892   🗄️.is đź”—kun   >>2907 >>3070 >>3195 >>3307 >>3431

United States Oil Fund (USO) faces possible SEC action

 

The U.S. Securities and Exchange Commission is considering enforcement action against United States Oil Fund LP, the largest crude oil exchange-traded fund, due to statements made after oil prices plunged into negative territory in April. The United States Oil Fund LP was designed to mimic day-to-day fluctuations in current U.S. oil futures. In April, the oil market collapsed, with U.S. futures falling below negative-$40 a barrel, USO lost 45% within a two-day span.

 

The notice, known as a Wells notice, says SEC staff have made a preliminary recommendation against USO, United States Commodity Fund LLC and its chief executive officer, John Love, saying it may have violated securities laws related to misstatements or fraud, according to the filing. The notice cites the fund’s disclosures in late April and early May on the constraints imposed on its ability to invest in oil futures contracts. USO said in April it may not be able to meet its objective of reflecting the spot prices of oil, as it shifted funds out of near-term contracts in case oil futures slumped again. The fund said in Wednesday's filing that their disclosures and their actions were appropriate and that they intend to contest the allegations. Like other ETFs, USO sold out of May contracts and bought June and later-dated contracts further forward well before the meltdown on April 20. However, over the coming days and months, the ETF said it would move a significant portion of its portfolio into later-dated contracts.

 

On April 21, the fund said it had issued all of its registered shares and was thus suspending the creation of new shares. As a result of the suspension, there was a significant discrepancy between the fund’s trading price and the performance of the oil futures it held.

https://www.reuters.com/article/us-united-states-oil-fund-probe/united-states-oil-fund-faces-possible-sec-action-filing-idUSKCN25F1D5

This is mostly a retail product but the big boys do have some exposure-not much

Institutional Ownership

https://screener.fidelity.com/ftgw/etf/goto/snapshot/ownership.jhtml?symbols=USO

 

“Wells Notice”

https://www.sec.gov/ix?doc=/Archives/edgar/data/1327068/000117120020000528/i20469_uso-8k.htm

What is a Wells Notice

A Wells Notice is a notification issued by regulators to inform individuals and companies of completed investigations where infractions have been discovered. It usually takes the form of a letter, which notifies recipients of both of the broad nature of the violations uncovered, and of the nature of the enforcement proceedings to be initiated against the recipient. The Wells notice is named after the Wells Committee, formed in 1972 by then-SEC Chairman William J. Casey in order to review the SEC’s enforcement practices and policies, and chaired by John Wells.

https://www.investopedia.com/terms/w/wellsnotice.asp

Anonymous ID: 5af486 Aug. 19, 2020, 10:54 a.m. No.10343209   🗄️.is đź”—kun

>>10343095 Australia's big four banks remove thousands of ATMs and shut down hundreds of branches as the coronavirus crisis pushes nation closer to a cashless society

 

notable

 

can't get cash so you'll have to use OUR crypto's eventually