Jonti said:
We live in a world of conflicting national regulations, shell companies, numbered accounts, bearer bonds and banking secrecy. Are you really going to defend the pretense that financial dealings can only be transparent?
My point essentially revolved around the fact that these are "Exchange Traded Instruments".
In order to buy/sell something like this, the buyer/seller has to have an account with a broker.
For an account to be set up with a broker, a lot of checks are made re bank a/c details, verification of identity (coporate and personal accounts) etc.
Anyway, client gives order to broker.
The broker must be regulated to transact business on behalf of client accounts on that exhange (again, a lot of paperwork/cost involved in setting yourself up as a broker).
Broker transacts client order on the exchange. The other side of the transaction (obviously for every buyer there is a seller) is known as the counterparty. Depending on the exchange, the counterparty may be another
broker or a "market maker" (essentially a company acting on it's own behalf in the market in order to provide liquidity). Note that the advantage of the exchange system is that the exchange guarantees the deal if one side or the other goes bust/defaults.
At each stage of the trade conducted in the market there is an electronic trail re: who did what plus, in this day an age (early 1990's in London to my certain knowledge) all broking/trading phone lines are taped.
So, to find out the ultimate client who gave the order to buy the puts an buy the stock would be trivial. In this case the client turned out to be a mutual fund.
conflicting national regulations . . . not so much these days.
shell companies . . . with the intelligence resources available to the US I'd have few doubts that the ultimate beneficiary could be found if thay wanted to
numbered accounts . . . not sure what you mean by this but pretty sure that Swiss numbered accounts for example are "unsafe" these days,
bearer bonds . . . This is the 21st Century. Anyone walking into a bank with a load of bearer bonds and expecting them to be cashed without questions being asked would be in for a surprise + US bearer bonds are, iirc, required to be registered under what is known as Rule 144a