Concern centres on China's informal lending or shadow banking market - rich individuals and businesses that offer loans at interest rates spanning from 14% to 70%.
According to the Financial Times, the potential violation could stem from the fact that as the number of Facebook shareholders exceeds 500, the company would be required to disclose detailed financial information, something it has managed to avoid. (See Facebook, Twitter, And The Shadow Stock Market).
FORBES: Goldman Sachs Limits Facebook Share Offer To "Offshore" Investors, Fears Breaking U.S. Law
Pictured above is a bit of good news in the shadow of LG's market pummeling this morning.
ENGADGET: LG's FM37 touch-screen MP3 player (and others) outted in Korea
Shadow universities minister Gareth Thomas said a market could develop with all sorts of "hidden and unintended" consequences.
Advanced Micro Devices struggled last year under the shadow of its rival Intel in the PC microprocessor market and against Nvidia in the discrete GPU market.
FORBES: Rising PC Tide Lifts All Boats, AMD Stock Floating To $9
That may not be the worst thing, given the excesses that led the the bubble bursting five and a half years ago, but Alpert thinks one of the knock-on effects is housing demand from institutional investors masking the fact that shadow inventory is still a significant overhang on the market.
FORBES: Fannie Mae Rides The Wave Of U.S. Housing, Books Record Profit
Meanwhile, the market for auction-rate securities is a shadow of what it was.
Greg Hunt, the shadow minister for climate action, pointed to the EU market's price swings in the aftermath of Tuesday's vote.
After failing to anticipate the meteoric rise of smartphones and spending months languishing in the ever-growing shadow of the two smartphone giants, rivals and erstwhile market leaders, Research in Motion and Nokia, seem to have finally gotten their act straight.
Shadow energy secretary Meg Hillier said she wanted a new electricity market to be "greener and create certainty for industry" and called for "a good deal for consumers, both as users of energy and as taxpayers".
In a meeting at the New York Fed Monday afternoon, 17 commercial and investment banks joined three fund managers (including the Chicago hedge fund Citadel Investment Group) and trade groups to talk about ways of providing better disclosure of the over-the-counter derivatives market, which is part of the so-called shadow banking system.
Couple that with the shadow inventory of homes not presently for sale that will go on the market once conditions improve and the outlook for housing remains troubling.
Getco already casts a tall shadow over daily trading, by some estimates roughly 20% of stock market volume, so for it the move is symbolic of changes it has been trying to lead over the last decade.
Shadow energy secretary Caroline Flint called for "a complete overhaul of our energy market".
The biggest threat is a large shadow inventory of unsold homes, homes which owners won't put on the market because they are underwater, homes that will be foreclosed eventually and homes owned by lenders.
The housing recovery is already having a positive impact on growth, pushing GDP up as residential investment accelerates, but with more than 1.1 million homes in some state of foreclosure and a shadow inventory that tops 2 million units, it will take some time for the market to truly heal, while the risk of slowdown and a reversal remains a possibility.
FORBES: Home Prices Growing At Pre-Bubble Rates On Bernanke Boost, But Big Shadow Inventory Lurks
We continue to see conditions in the existing home market as putting downward pressure on inventories and supportive of a gradual cleansing of shadow inventory.
FORBES: Housing Recovery? Starts And Sales Of Existing Units Hit Two-Year Highs
Shadow Treasury chief secretary David Heathcoat-Amory said the amendment would give those accused of market abuse such as insider dealing a defence if they could show they complied with the City Code.
Caroline Flint, Labour's shadow energy and climate change secretary, said it was important for the UK to have an energy market that "delivers fair prices and works in the public interest".
While the shadow inventory and a clogged up foreclosure pipeline present challenges, if the economy improves to the point where the labor market begins to seriously recover, it should be possible to overcome those obstacles in the medium-term.
FORBES: Home Prices Growing As Fast As Before The Housing Collapse: Case-Shiller
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