Cocky Dagger Cancels ISE Sale; Transcript With Q&A

Official word is out, the sale of the International Stock Exchange is off.

[18:33] Cocky Dagger: I will make a brief statement and then open it up to Q&A.
[18:34] Cocky Dagger: At this time, the ISE is ending the bidding process and I will continue my responsibilities as is.
[18:34] Cocky Dagger: Lets make this informal as possible but please be courteous of others.
[18:34] Cocky Dagger: A lot of bids are still being submitted and I appreciate the interest.
[18:35] Cocky Dagger: But with major changes happening over the weekend, I don't feel in good faith that the ISE can be sold to new management.
[18:35] Cocky Dagger: ok, I will open it up to questions, please use a ? and be courteous of others.
[18:35] Cocky Dagger: ok, I will open it up to questions, please use a ? and be courteous of others.
[18:36] Nobody Fugazi: ?
[18:36] Delinda Dyrssen: yes.. what are the major changes that happened this weekend?
[18:36] Cocky Dagger: go ahead Nobody?
[18:36] You: So, ISE is not for sale? Is that what you are saying?
[18:36] Cocky Dagger: Yes, the ISE is off the market at this time.
[18:37] Cornflake Carter: can u tell use pls what happened?
[18:37] Cornflake Carter: us
[18:37] Cocky Dagger: sure Cornflake
[18:37] ManqoQhapaqInca Qunhua: yes, please
[18:38] Cocky Dagger: the ISE was put up for sale late last week. Anyone could submit a sealed bid.
[18:39] Cocky Dagger: With six companies delisting over the weekend, it would be tough for anyone to value the ISE at this time and I felt it best not to sell at this time.
[18:39] Delinda Dyrssen: ?
[18:39] Cocky Dagger: go ahead, Delinda
[18:39] Delinda Dyrssen: why did 6 companies delist this weekend and is nt that a rather unusual number?
[18:40] Cocky Dagger: Nothing was communicated to me personally at the time of the delisting. But it happened soon after a policy change to make the ISE more transparent.
[18:40] jasper Tizzy: can I make a comment?
[18:41] Cocky Dagger: At this time, I believe one company has disclosed publicly that they were unhappy with the bid process and that was the reason.
[18:41] Cocky Dagger: Go ahead Jasper
[18:42] jasper Tizzy: TY - It was the auction that set the wheels in motion for us to move to another exchange.
[18:42] Cocky Dagger: ok, now 2 CEO's have said publicly they were unhappy with the bid process.
[18:42] jasper Tizzy: the 144 issue was just a violationof the people's privacy and as stated to me by traderjohn it was against the SL TOS
[18:43] Cocky Dagger: it is the ISE's position that the rule 144 is perfectly fine
[18:43] Cocky Dagger: and it is listed as a policy required by the SLEC
[18:43] jasper Tizzy: the option was made by Mr Dagger to delist if we did nt want to be part of the 144 rule as it was stated
[18:43] Cocky Dagger: which TraderJohn is the chairman of
[18:44] Cocky Dagger: Also, I think it is probably best to let TraderJohn respond to how he feels about it
[18:44] Cadence Juran: ?
[18:44] Cocky Dagger: go ahead, Cadence
[18:44] jasper Tizzy: this is the real 144 rule
[18:44] jasper Tizzy: http://www.sec.gov/investor/pubs/rule144.htm
[18:45] Cocky Dagger: Jasper, please be respectful of others
[18:45] Cadence Juran: Cocky, could you walk our guests through the ISE's transparency policy (Rule 144) and how it is implemented at the ISE
[18:45] Cadence Juran: Cocky, could you walk our guests through the ISE's transparency policy (Rule 144) and how it is implemented at the ISE
[18:46] Bevan Whitfield: thank you
[18:46] Cocky Dagger: in the need for better transparency on stock exchanges in second life
[18:46] jasper Tizzy: agree but that is not 144 rule
[18:46] Cocky Dagger: Jasper, I will tell you one more time, please be respectful of others
[18:47] Cocky Dagger: CEO's and major shareholders stock transactions are disclosed to the public
[18:47] Cocky Dagger: this is already implemented on the exchange but not as transparently as it should be
[18:48] Cocky Dagger: this is also, done at the WSE, another stock exchange in Second Life
[18:48] Cocky Dagger: This has been the most requested feature by members of the ISE
[18:48] Cadence Juran: ?
[18:48] Cocky Dagger: go ahead Cadence
[18:49] Cadence Juran: Will the ISE ever disclose private and personal information on any CEO or investor? for example, IP addressess, etc?
[18:49] Cocky Dagger: no, absolutely not
[18:49] Cadence Juran: thank you
[18:49] jasper Tizzy: ?
[18:49] Cocky Dagger: go ahead, Jasper
[18:50] jasper Tizzy: from what I seee on the sec weboage about 144 rule, it soes not say anything about what you are doing
[18:50] jasper Tizzy: does*
[18:50] Cocky Dagger: This is Second Life, does it really have to be the exact same?
[18:50] Travis Ristow: Amen
[18:50] Cocky Dagger: I don't really understand your point.
[18:50] Cadence Juran: Cocky if I may add something further
[18:50] Nobody Fugazi: ?
[18:50] Cadence Juran: ti clarify
[18:51] Cadence Juran: Jasper
[18:51] jasper Tizzy: yes
[18:51] Cadence Juran: for sake of no further confusion.. the ISE's 'Transparency Policy = Rule 144' within the construct of SL
[18:52] Cadence Juran: as Cocky has just described
[18:52] jasper Tizzy: ok so it is not ther real 155 rule
[18:52] Cocky Dagger: thank you, Cadence
[18:52] jasper Tizzy: 144
[18:52] jasper Tizzy: Rule 144 will be in effect tonight. CEO's and their alts that resolve to the same ip address will have their transactions displayed for the last 10 days.
[18:52] Cocky Dagger: go ahead Nobody
[18:53] Nobody Fugazi: for clarity of others, I will explain the reasoning behind Rule 144's application here, and you can tell me if it is right: The use of alternate avatars creates the potential for insider trading by a single individual or a group of individuals, and tracking trades by IP addresses is the best way to handle this with what is available at this time. Am I correct in summing this up this way?
[18:53] Cocky Dagger: I think that is a good summation.
[18:53] jasper Tizzy: ?
[18:53] Cocky Dagger: go ahead, Jasper
[18:54] jasper Tizzy: is insider tradding wrong when there is no event int he company that willbe effecting the comany?
[18:54] jasper Tizzy: Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by corporate insiders such as officers, key employees, directors, or holders of more than ten percent of the firm's shares
[18:54] jasper Tizzy: Insider trading may be perfectly legal, but the term is frequently used to refer to a practice, illegal in many jurisdictions, in which an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise misappropriated
[18:55] Cocky Dagger: definitely, insider trading may be legal
[18:55] Cocky Dagger: in many cases
[18:55] jasper Tizzy: so this tule you made is not the same as the sec rules?
[18:55] Cocky Dagger: but if someone dumps a million shares and then tries to manipulate the market
[18:55] jasper Tizzy: rule
[18:56] Cocky Dagger: I think shareholders have a right to know that
[18:56] Cocky Dagger: Insiders have to declare their trades in real life
[18:56] Cocky Dagger: but this is Second Life, where there is very little transaparency
[18:57] Cocky Dagger: anything that can be done to help the shareholders is a good thing
[18:57] jasper Tizzy: agree
[18:57] Cocky Dagger: go ahead, Jasper
[18:58] jasper Tizzy: why use the name auction?when it was not an auction that scared many people away. and made people say they would vote for the bid that gave them the most cash
[18:59] Cocky Dagger: I don't really know what you are talking about.
[18:59] Cocky Dagger: I received many bids, they are sealed and I can't disclose whom.
[18:59] jasper Tizzy: the title was auction
[18:59] jasper Tizzy: people were ssaying they would vote where they recieve the most cash
[19:00] Cocky Dagger: they may, I left it up to them.
[19:00] Cocky Dagger: Shareholders own the company.
[19:00] jasper Tizzy: ok but the sale im my idea was your shares only
[19:00] Cocky Dagger: it never said that
[19:01] Cocky Dagger: you kept saying that and people kept correcting you
[19:01] jasper Tizzy: to pay others was a bribe for te votes
[19:01] Cocky Dagger: I think that may be slander
[19:01] Cadence Juran: indeed
[19:01] jasper Tizzy: what is slander?
[19:01] Cocky Dagger: My apologies for the use of auction
[19:01] Cocky Dagger: it was a poor choice of wording by me
[19:01] jasper Tizzy: ok that was confusing me as auction
[19:02] Cocky Dagger: I think you just accused me of trying to bribe the shareholders
[19:02] Cocky Dagger: nothing could be further from the truth
[19:02] jasper Tizzy: nonot at all cocky
[19:02] Cocky Dagger: please clarify then
[19:02] jasper Tizzy: the members of ise was saying they would vote with the bidder that paid them the most
[19:02] jasper Tizzy: not you
[19:03] Cocky Dagger: Jasper, I have no clue what you are talking about
[19:03] Cocky Dagger: I'm trying to follow you
[19:03] jasper Tizzy: i can get the quote 1 min
[19:03] Delinda Dyrssen: /Im sorry but I have to be going to another appointment now thank you..
[19:05] jasper Tizzy: here is a quote under the post about ise auction
[19:05] jasper Tizzy: So, from my point of view the interested buyer could offer a cash payment to the shareholders like a dividend and buy a large position of Cocky's shares to make sure that he owns more than 50%. My vote will depend on the amount of cash I get paid and the trust I have in the buyer.
[19:05] Cocky Dagger: yes, so what is your point?
[19:05] Cocky Dagger: I am still not following
[19:05] jasper Tizzy: that was posted by GeorgPennell 315,000 shares
[19:05] Cocky Dagger: yes
[19:05] jasper Tizzy: My vote will depend on the amount of cash I get paid and the trust I have in the buyer.
[19:06] Cocky Dagger: I don't understand, are you accusing Georg of bribing somone
[19:06] Ash Fitzpatrick: ?
[19:06] jasper Tizzy: i see it as he said his vote was motivated by cash to him
[19:06] jasper Tizzy: i copied his words
[19:07] Cocky Dagger: what did you want him motivated by?
[19:07] jasper Tizzy: ok look at this from my point
[19:07] Cocky Dagger: He thinks a cash dividend to the all shareholders except me and my shares is a good deal.
[19:07] ManqoQhapaqInca Qunhua: isn´t that manipulation of the market, Sir?
[19:08] jasper Tizzy: i see the sale or auction is for your shares sir, and for him to want to get paid cash to vote was not fair, and this is why I delisted from ise and said i was not going to bid
[19:08] Cocky Dagger: What were you going to pay in?
[19:09] Cocky Dagger: How were you going to finance it?
[19:09] Cadence Juran: I have one question for jasper... If you were unsure or had questions.. why did you not ask Cocky about the exact terms of the bid process?
[19:10] jasper Tizzy: everyone was in the open forum including cocky dagger, i was a bit mad that one board member knew about this even and i was not told and I was a 3rd board member
[19:10] Cocky Dagger: I knew you would bid
[19:11] Cocky Dagger: You would have had an advantage over anybody else by having the information before hand
[19:11] Cocky Dagger: I'm sorry Ash, go ahead
[19:10] jasper Tizzy: everyone was in the open forum including cocky dagger, i was a bit mad that one board member knew about this even and i was not told and I was a 3rd board member
[19:10] Cocky Dagger: I knew you would bid
[19:11] Cocky Dagger: You would have had an advantage over anybody else by having the information before hand
[19:11] Cocky Dagger: I'm sorry Ash, go ahead
[19:13] Cocky Dagger: ok thanks
[19:13] jasper Tizzy: did ManqoQhapaqInca Qunhua have a ?
[19:13] Cocky Dagger: go ahead MangQhapalqnca
[19:13] ManqoQhapaqInca Qunhua: It was only a comment, Sir. Thank you
[19:14] Cocky Dagger: ok great
[19:15] ManqoQhapaqInca Qunhua: Yes, i see the process a bit of manipulation if people pays to make others sell or buy shares, and this distorts the market and specially the truth and hope of potential investors
[19:15] Cocky Dagger: I'm sorry, what are you referring to?
[19:15] ManqoQhapaqInca Qunhua: regards votes
[19:16] Cocky Dagger: which process?
[19:16] Cocky Dagger: I am still not following.
[19:16] ManqoQhapaqInca Qunhua: votes motivated by promised cash or dividens
[19:17] jasper Tizzy: My vote will depend on the amount of cash I get paid and the trust I have in the buyer.
[19:17] jasper Tizzy: that quote
[19:17] ManqoQhapaqInca Qunhua: exactly
[19:17] Travis Ristow: ?
[19:17] Cocky Dagger: go ahead, Travis
[19:18] Travis Ristow: I would just like to make a statement, The fact that shareholders wanted the best possible deal is in NO way manipulating anything. It was purely a statement of what certain shareholders expected.
[19:18] Dorothy Oyen: ?
[19:19] Cocky Dagger: Thank you, Travis.
[19:19] Cocky Dagger: Mango
[19:19] Cocky Dagger: sorry, Dorothy, go ahead
[19:20] ManqoQhapaqInca Qunhua: you can named best deal from one perspective, but one have to remember that in SL trust is extremely important due the anonymity implied, and from other perspective, normally general, one can see this a manipulation and bribery, which probably it is not, but causes concerns in new investors.
[19:21] Dorothy Oyen: It's not a real question. But as I understand if you read comments on a press release this always concerns personal subjective reaction, and ought never to be taken as objective. So if someone talks about getting money for it, it is his view
[19:21] Dorothy Oyen: Not the view of the company. Or am I wrong?
[19:21] Cocky Dagger: Mango, that's not true and since Jasper has exposed the person who made that statment, you are making false statements
[19:21] Cadence Juran: Indeed
[19:21] jasper Tizzy: it is in the open message forum
[19:22] Cocky Dagger: it's not manipulation
[19:22] Cocky Dagger: A shareholder owns the company
[19:23] Cocky Dagger: it his right to determine what he will sell it for
[19:23] ManqoQhapaqInca Qunhua: i am taking the role as potential investors or group of potential investors, and seeing this makes me thing that the market is not transparent enough to risk money in someone i dont see or cant sue in case things go wrong
[19:23] Cocky Dagger: Mano, please use a ?
[19:23] Cadence Juran: topics discussed by investors in the open forum are not official position of the ISE
[19:23] jasper Tizzy: ?
[19:23] Cocky Dagger: sorry, Mango
[19:23] Cocky Dagger: go ahead, Jasper
[19:23] ManqoQhapaqInca Qunhua: yes, sorry
[19:24] jasper Tizzy: ok the point again is was the issue that cocky dagger was going to sell his shares? if so then that is why I ask what the others ge paid for if they are not sellign any shares?
[19:24] Cocky Dagger: Jasper, this was explained to you over and over
[19:25] Cadence Juran: ?
[19:25] Cocky Dagger: the whole company was for sale, how the potential buyer financed was up to them
[19:25] jasper Tizzy: so all shares would be sold
[19:25] jasper Tizzy: i asked that to them in open forum they said they did not want to sell
[19:26] Cocky Dagger: that is one way of financing it.
[19:26] jasper Tizzy: but to force all shareholders to sell?
[19:26] Cocky Dagger: you could have issued them an equal share for existing shares
[19:26] jasper Tizzy: but it was you that was leaving not the complete company
[19:26] jasper Tizzy: but it was you that was leaving not the complete company
[19:28] Cocky Dagger: Jasper, please go back and read the thread. I think these concepts have been covered ad nauseum
[19:28] jasper Tizzy: you can talk now to clarify
[19:28] Cocky Dagger: What am I suppose to clarify?
[19:29] jasper Tizzy: my understaning was you was going away, and you was selling your shares
[19:29] Cocky Dagger: the company was for sale, the bidder was to submit the details.
[19:29] Cocky Dagger: You thought that, nobody else did
[19:29] jasper Tizzy: my investors some agree with me and manbgo maybe now also
[19:30] Cocky Dagger: Jasper, please quit talking for other people
[19:30] Cocky Dagger: You have already revealed a quote from TraderJohn
[19:30] Cocky Dagger: which is against the community standards
[19:30] jasper Tizzy: that is what made me act the way I did
[19:31] Shava Suntzu: ?
[19:31] Cocky Dagger: so, lets go ahead and wrap this up. I don't think anything constructive is coming of this
[19:31] Cocky Dagger: go ahead, Shava
[19:31] Nobody Fugazi: if I may interject, I have emails that say that quoting on websites is not against the Community Standards. that email is from Robin Linden.
[19:32] jasper Tizzy: ty
[19:32] Shava Suntzu: First, I'm curious about how people are talking about insider trading. Insider trading is not illegal, it must be disclosed, if it is done by principals, but if insiders leak info to others then *that* is illegal, yes? In the real world?
[19:32] jasper Tizzy: whos shares were for sale?
[19:32] jasper Tizzy: cocky dagger
[19:32] Cocky Dagger: Jasper, that is enough. That question has been answered
[19:32] Shava Suntzu: Also, I have to note as an SL journalist that you can reveal info from public events in the press and such, or from private conversation with permission.
[19:33] Cocky Dagger: Insider trading is legal
[19:33] Cocky Dagger: it must be disclosed
[19:33] Cocky Dagger: Insider trading with some knowledge that is not in the public, is not legal.
[19:35] Cocky Dagger: The ISE has an ongoing discussion on who should disclose information and policy will be set from that discussion.
[19:35] Shava Suntzu: ?
[19:36] Cocky Dagger: go ahead, Shava
[19:37] Shava Suntzu: With the troubles at WSE and Ginko, this is a...volatile time for the in-world markets. I understand that you are pulling the bidding process, but if you did sell, would you have been divesting of SL markets, entirely?
[19:37] Sana Holmer: 12
[19:37] Cocky Dagger: no, I would have been glad to help out with the continued development, I very much enjoy that.
[19:37] Cocky Dagger: If the new management wanted me to.
[19:38] ManqoQhapaqInca Qunhua: ?
[19:38] Cocky Dagger: I would pursue other projects in Second Life also, and help out people with projects that I have promised but can't find time.
[19:38] Cocky Dagger: go ahead, Mango
[19:38] ManqoQhapaqInca Qunhua: May I ask what will be the future now for the ISE, Sir?
[19:39] Cocky Dagger: I will continue to run the ISE, work on rolling out new features, and evaluate strategic direction from here.
[19:40] Cocky Dagger: I am very excited about how excited people are over new features, such as comments on the press releases.
[19:41] Cocky Dagger: And some of the new policies, such as the SL144 rule.
[19:41] jasper Tizzy: ok it is now SL 144 rule
[19:41] jasper Tizzy: ok
[19:41] ManqoQhapaqInca Qunhua: Thank you, Sir. I think that you continue is ver important as this will provide certainty and a following up process tha the other Stock Exchanges dont have.
[19:41] Cocky Dagger: Thank you, Mango.
[19:42] Cocky Dagger: I got lazy and didn't type the whole name, it is a long one
[19:42] ManqoQhapaqInca Qunhua: no problem, it takes 10 secs type my name
[19:42] ManqoQhapaqInca Qunhua: lol
[19:42] ManqoQhapaqInca Qunhua: :)
[19:42] Cocky Dagger: Also, we are excited to have Crescendo Corp on board and helping to bring new events such as the Black Tie Gala, we will be hosting on Sep. 8
[19:43] Cocky Dagger: SL Sep 8.
[19:43] Cadence Juran: Thank you Cocky
[19:43] Cocky Dagger: which is the same as RL Sep 8th, this time.
[19:43] Cadence Juran: PLease IM me for details and the invite
[19:43] jasper Tizzy: i helped you in april get started, i took this ise to the level it is and you act now like im a problem, back in apil i was you friend against sal ackland
[19:44] jasper Tizzy: remember
[19:44] Cocky Dagger: Jasper, I am appreciate of what you have done
[19:44] Cocky Dagger: but you chose to leave
[19:44] jasper Tizzy: you keep me now in the dark
[19:44] Cocky Dagger: I didn't ask you to leave.
[19:44] jasper Tizzy: rodders knew about this and i didnt
[19:45] Cocky Dagger: I wanted as fair a process as possible. You have had information, that you were going to submit a bid on by your own admission.
[19:45] jasper Tizzy: he told intl of bnt before me
[19:45] Cocky Dagger: My understanding is that it was already public on the website.
[19:45] Cocky Dagger: He was informing Intl of it.
[19:45] Cocky Dagger: Nothing wrong with that.
[19:46] jasper Tizzy: so this is why left not the so called 144
[19:46] Cocky Dagger: I was opening the communication for a policy change or expanding policy.
[19:47] Cocky Dagger: If my wording again, in your opinion was poor, then I apologize.
[19:47] Cocky Dagger: It's an open discussion going on the website.
[19:47] jasper Tizzy: i cant say what rodders told me
[19:47] jasper Tizzy: you know better
[19:47] Cocky Dagger: I don't know what Rodders told you.
[19:48] Cocky Dagger: If there are no more questions, then lets go ahead and end.
[19:48] Cocky Dagger: Thanks everyone