Financial futures got a CME margin....drop
roadrunner
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Linky
33% margin drop announced by CME today on the XAF (financials). So for increasing volatility in financials....they get a drop rather than an increase? I can understand
why the Treasury and FED would have no problem with a hike on the dollar or TBonds as they are getting too high and are hurting US exports.
But financials?
Any chance that this margin drop was leaked during the last hour of trading and caused financials to have an outside reversal day and the stock market to tack on 400 pts in
less than an hour?
........nah!
So when can we expect a drop in silver's margin reqs soon?
roadrunner
33% margin drop announced by CME today on the XAF (financials). So for increasing volatility in financials....they get a drop rather than an increase? I can understand
why the Treasury and FED would have no problem with a hike on the dollar or TBonds as they are getting too high and are hurting US exports.
But financials?Any chance that this margin drop was leaked during the last hour of trading and caused financials to have an outside reversal day and the stock market to tack on 400 pts in
less than an hour?
........nah!So when can we expect a drop in silver's margin reqs soon?
roadrunner
0
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<< <i>Linky
33% margin drop announced by CME today on the XAF (financials). So for increasing volatility in financials....they get a drop rather than an increase? I can understand
why the Treasury and FED would have no problem with a hike on the dollar or TBonds as they are getting too high and are hurting US exports.
roadrunner >>
effort to encourage more speculative dollars into equities. Consider it a "bailout" for NYSE and NASDAQ.
Definitive proof that margin requirements are being used to direct investment funds.
"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
And yesterday they hit platinum with a 29% hike and copper with yet another 15% hike. Gotta keep kicking those mules while their comatose.
Heck, who needs the FED to handle price controls? Just have the CME jerk margins around every few weeks and we'll get great price stability.
Now that the FED is out of liquidity, can't send money to foreign banks like they did in 2008, and have Dodd-Frank hampering operations, they have
resorted to the CME and CFTC to do the remaining dirty work. The CFTC was supposed to install commodity limits early this year but have been
taking their sweet time to help the bankster shorts wind down positions and take one last whack at the commodity sector. CFTC Chairman Gensler
goes before Congress this week to explain the delay. Supposedly are now going to put them into effect in 2 weeks - don't count on it. But after this
final whacking of all commodities, the limits are like closing the barn doors after the horses have left. But at least they still have the CME's margin bullets.
Of course, once those run out and futures are only leveraged at <5-1 many speculators may just prefer buying the commods via 2X/3X ETF's instead or just
buy physical metal with cash.
roadrunner
I knew it would happen.
was like high octane fuel for the markets. Coordinated effort? Don't know. Which one had larger effect? Don't know. Did the PPT stick their hand
in there at the same time as well? Don't know. It was an astounding move in 45 min if just rumors. The 33% margin cut was the only real fact.
Of course then this comes out this morning saying that those EU rumors were false. But they were good enough to sheer some sheep.
EU Economic and Monetary Commissioner Olli Rehn “doesn’t speak of a concrete plan in hand,” his spokesman, Amadeu Altafaj, told reporters in Brussels today.
“He speaks of an initiative, of discussions in progress and he pleads for a European approach.” Altafaj was responding to questions about Rehn’s comments to the
financial Times yesterday.
roadrunner