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CME Cuts Treasury Futures Margins By 30% In Under Three Weeks Despite 20% Jump In Volatility
While it didn't lower ES margins just like before the S&P rout started several weeks ago, the CME has just decided to lower margins across virtually all interest rate products. Again. This is the second consecutive margin drop in under 3 weeks, following an identical action on June 3 when the CME slashed IR margins initially. Some examples: TEN maintenance and initial margins are down from $2160 and $1700 to $1485 and $1100 respectively, or over 30% each in under weeks, 17 (the 30 Year UST Bond Futures) maintenance and initial margins are down 3713 and 2750 to 2700 and 2000 respectively, another 30% drop, and so on. Most amusingly is attempting to validate this margin cut when looking at the Treasury complex vol expressed by the MOVE index. Oddly enough from 71.50 at the beginning of June, or a 2011 low, vol since surged to nearly 2011 highs, or a roughly 20% jump. Yet it is precisely this jump in volatility that somehow is conducive to not one but two margin cuts in three weeks. Luckily, the end of QE3 in precisely 10 days has nothing to do with this decision which makes investing in Treasurys by speculators so much more easy...
MOVE:
And the complete CME release:
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If we build it they will come, lol.
The white-collar criminal banking syndicate has clearly outlined their preference in order to keep everyone enslaved and beholden to them, and it reads:
And the CME is just another white-collar corrupt means to manipulate citizens and give the banksters more time to confiscate property, livelihoods, souls, life, and liberty.
Fuckers.
Well said, (in)mate.
+100
+101
This could go either way.
Lower margins also makes it easier for smaller players to open SHORT positions.
That said, if it ends up promoting small spec LONG bets, I'll take it. I'm long.....for now.
They could just be making it easier for various entities to balance out the exodus from 10's by buying on margin. Volume will spike, but for 10's (since Twist 2 will probably target 2 and/or 3 year part of the curve) prices will not fall (and yields will not rise) as much as one might expect after June 30. That, at least, is what I suspect.
Tyler, you made a freudian slip ;-)
You know, we might as well drop the number anyway, since there will likely be no clear starts and stops to these things (or even announcements).
For all we know we could be on QE7 by now (with 3-6 still stealthily going strong).
good catch. that's funny.
I noticed that too. Time to add more fluoride to the water. Anything to get those ES up.
Haha, didn't realize that one.
But sometimes I see those very easy to overlook typos where I get the feeling Tyler puts them in to have a handle on the copy&paste artists...
Keep up the great work!
Anything about lower silver margins in there...lol!
No, but the CME is certainly paying attention to the marginal silver 'holder for delivery' contract owners. Those people might just fuck it all up for them. Of course, Max Keiser will be blamed instead.
in fairness to the worthless, lying bastards @ the crimex, they are probably just doing as the PPT commands...again...
Absolute proof they are totally bought and paid for, and cannot ever be expected to do anything honest, ethical or rational. Their one and only practice is to serve the predators-that-be and predator-class. Up theirs!
this shit is outrageous.
So, if I interpret this correctly, this is to stimulate the purchase of those interest related products?
This is for the HFT pump and dumpers. While the little finger pumps, the fat thumb dumps. "Will the last human trader in the bathroom please flush the toilet?"
Sick.
The CME works for the government and their here to help dontcha know.
I believe this is the third margin cut actually.
been wondering wny the macd for tlt and the s and P look so different. I think some knoew this was in the pipes.
it is done to help Pimco, who got the whole rates move wrong and now needs to shake the market up and down by just playing with it big size to make its return. CME lowered the margins just in time to help them.
What?
Do they seriously want to invite crazy HFT algos after what happened to natural gas last week?
I caught that! Check all the metals!