CME Hikes Crude Maintenance And Initial Margins Again
Now that it is proven that even Goldman commodity downgrades have a half life of 2 days, here come the exchanges. In a move that would surprise exactly nobody, the CME announce at close of trading that it is hiking the initial and maintenance margins for Crude, WTI and Brent Tiers 1-6 anywhere from 6% to 15%. Curiously, the CME is concurrently lowering margins on a variety of natgas, gasoil and crack futures contracts. Still, the move begs the question: why did the CME not hike margins when WTI and Brent were trading about 4% higher is unclear. What is clear is that the ongoing attempt to kill the "speculators" who are solely responsible for the surge in crude prices (and not the Fed, never the Fed) will continue. As we have been saying, prepare for more deflationary downgrades of all asset classes by Goldman, especially if this latest margin hike has the same effect it has had over the past several months: none.
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