Just in case you missed it. CME did it again last night
piecesofme
Posts: 6,669 ✭✭✭
I can't say the word on this board that I'd like to call them.
i hate the CME
This is what a dealer just emailed me talking about what's going on. I think it's the way to look at it in a nutshell.
jp morgan is paying them to raise the margins so they can cover there shorts, all corrupt for sure.... a nice correction is always healthy for the market... look 1 month ago today, silver was $38.45 so its still higher than 1 month ago, just went up way to fast in 30 days,
i hate the CME
This is what a dealer just emailed me talking about what's going on. I think it's the way to look at it in a nutshell.
jp morgan is paying them to raise the margins so they can cover there shorts, all corrupt for sure.... a nice correction is always healthy for the market... look 1 month ago today, silver was $38.45 so its still higher than 1 month ago, just went up way to fast in 30 days,
To forgive is to free a prisoner, and to discover that prisoner was you.
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to trade for all cash and no leverage. A lot of people probably got wiped out on some of these massive silver drops. Many had too much leverage.
But certainly JPMorgue probably suggested to the CME that a few rate hikes right now would really help them out of a jam.
roadrunner
Somebody besides cohodk buy some please, to stop the avalanche!
Were was this posted on this Forum??? Seems like it would've been a topic of discussion. This is the 3rd time you've said it was old news when I didn't see it talked about on this Precious Metals Forum...not that I read every single post either, it just seems someone would've created a topic about it as i have. Maybe old news...to you?
Here is the NEW news:
04 May 2011, 05:50 p.m.
By Kitco News
http://www.kitco.com/
(Kitco News) -CME Group is hiking silver margins again, with a late-Wednesday notice the fourth such announcement in the last two weeks.
CME Group, which operates the Comex division of the New York Mercantile Exchange, announced margin increases that will become effective at the end of business on Thursday, with yet another increase to go into effect after the close of business next Monday.
As of the end of business on Thursday, the “initial” margin to open new speculative positions in the main 5,000-ounce silver-futures contract will rise to $18,900 from $16,200, according to a notice released by the exchange. The “maintenance” margin for exiting speculative positions, as well as both initial and maintenance margins for hedger positions, will rise to $14,000 from $12,000.
Then as of the close of business on Monday, the initial speculative margin will rise further to $21,600. The speculative maintenance margin, as well as margins for hedgers, will increase to $16,000.
Margins are also rising for Comex MiNY silver futures and E-mini silver futures.
The notice from CME Group, which operates the Comex division of the New York Mercantile Exchange, said the change is a part of the “normal review of market volatility to ensure adequate collateral coverage.” The market has been volatile lately, with the most-active July futures contract surging sharply to $49.84 an ounce last week but subsequently pulling back as far as $38.94 and posting a decline of 7.5% on Wednesday.
The complete notice from CME Group can be seen at this link:
http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-159.pdf
Sheesh!
<< <i>This was old news
Were was this posted on this Forum??? Seems like it would've been a topic of discussion. This is the 3rd time you've said it was old news when I didn't see it talked about on this Precious Metals Forum...not that I read every single post either, it just seems someone would've created a topic about it as i have. Maybe old news...to you? >>
The third margin increase was mentioned in this thread:
linky
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<< <i>ZSL up double digits 3 days in a row, 40%+ increase since the first of the week. Somebody did OK, all in on red (or black), but it weren't me
Somebody besides cohodk buy some please, to stop the avalanche! >>
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Can anyone give a justified reason they are doing this?
If that were the system there'd never be a need to adjust notional margin values.
So, e.g. if silver were 5% initial MARGIN & 3% maintainance MARGIN (e.g.), then if a COMEX silver contract was priced at 40, the initial margin (on the then $200,000 value - i.e. on the 5,000 ounces) would be $10,000 & the maintainace would be $6,000. Similarly, if silver was at 50, the initial (on the then $250,000 value) would be $12,500 & the maintainace would be $7,500. There would be no instant jump on the way up but a gradual daily adjustment.
There's no reason for these "shocks" to the system by upping things in a "non-smooth" manner & thus (IMHO) cause uneeded disruption to the markets.
The percentage based system I propose would be more transparent (from a risk management standpoint) and continually adjust based on the contracts value. This is why (again IMHO) a FIXED dollar value of margin for a specific underlying is a system whose time has come (for much needed revamping).
Just fyi for those that may not know this - for all practical purposes, THIS IS EXACTLY THE SYSTEM ALREADY IN PLACE FOR FUTURES OPTIONS.
They may be right. I don't know.
TD
BINGO!
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
if XXX is so powerful that they can drive silver down, why wouldnt they use their power to drive silver up and profit that way? what motivates them to take the "down side" action?
www.AlanBestBuys.com
www.VegasBestBuys.com
<< <i>I can't say the word on this board that I'd like to call them.
i hate the CME
This is what a dealer just emailed me talking about what's going on. I think it's the way to look at it in a nutshell.
jp morgan is paying them to raise the margins so they can cover there shorts, all corrupt for sure.... a nice correction is always healthy for the market... look 1 month ago today, silver was $38.45 so its still higher than 1 month ago, just went up way to fast in 30 days, >>
This was so ... yesterday. Today silver (7:47 a.m.) is at $37.57.
I knew it would happen.
<< <i>for those who subscribe to the conspiracy theory:
if XXX is so powerful that they can drive silver down, why wouldnt they use their power to drive silver up and profit that way? what motivates them to take the "down side" action? >>
They no doubt benefited on the price rise up as well. There's just no way to know exactly. Since they are essentially doing the bidding of the Treasury and FED, no doubt there are
a number of hidden perks that go along with doing that work (ie socialized losses to name just one).
Will be interesting to see how much physical gets freed up by this 30% price drop. So far, about 30% of the "paper" silver has been shaken loose.
Cohodk said there was a 25-30% correction coming. But who would have expected it to take < 100 hrs?
roadrunner
Simple, because JP Morgan can't cover their Put positions and they are paying the CME under the table to cover their arse, literally. It needs to come down so JP can bring their bottom line back in line.
What is being allowed to happen is worse than the "flash crash" when the Dow dropped 1000 in like 10 minutes from awhile back. That was a breakdown in the system and one could call it a "mistake", but this is orchestrated...downright criminal in my mind.
<< <i>I hope that all the traders got out and saved their cash in order to buy physical. >>
Not when I can double down with ZSL.
It burned me the last two tries. Maybe three's a charm.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Box of 20
Asia turning up.
<< <i>i think we hit bottom boys
Asia turning up. >>
I'll believe it when that kitco green line crosses that red line. That's my que.
<< <i>Grab yer ankles........ >>
Didn't let go from the last two ZSL attempts.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>i think we hit bottom boys
Asia turning up. >>
Is this the dead cat bounce?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
The margins even “protect people from themselves” by keeping them out of positions during times of extreme volatility when they might not have the capital to cover losses, Smith explained.
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
What's the first rule of 'Fight Club'?
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Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I knew it would happen.
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Does anyone think the Bull run is gaining another full head of steam only to surpass recent highs? I am very cautiously optomistic. I guess we'll see.