• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

CME Preempts NYSE Treasury Derivative Trading, Offers 65% Margin-Reducing Treasury Trading Solution

Tyler Durden's picture

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Mon, 02/28/2011 - 13:39 | 1004216 CPL
CPL's picture

Like watching a shell game.

Mon, 02/28/2011 - 13:42 | 1004227 Herd Redirectio...
Herd Redirection Committee's picture

Who wants to see a Commodity Exchange go bust during their lifetime?  Esp the Crimex? 

Me too!

Check out the latest from the Capital Research Institute "The Elephant in the Room":


"We have all heard the expression at one time or another. An uncomfortable fact that every one is (at least dimly) aware of, yet is not spoken of. When discussing the global economy, the turmoil and the unrest the world is experiencing the elephant in the room is undoubtedly the Federal Reserve. The Fed (and other central banks) have unleashed the most recent spate of food inflation on the world through their ZIRP (zero interest rate policy) and use of ‘quantitative easing’ (which simply put, is money printing).

Money that would have been kept in savings accounts has been withdrawn (because it earns no interest) and invested largely in stocks, and commodities. On top of that, more money has been conjured into existence, without an increase in real economic activity to accompany it, leaving a larger amount of money chasing the same pile of goods and services. The result, obviously, is a loss of purchasing power, as each newly conjured dollar buys less than the one before it.

Ben Bernanke has come out and attempted to justify his actions, but what has been lost in all his posturing? That the criticism of his policies are legitimate!"

Mon, 02/28/2011 - 13:39 | 1004220 plocequ1
plocequ1's picture

Let me guess. The Taxpayer?

Mon, 02/28/2011 - 13:41 | 1004221 Oh regional Indian
Oh regional Indian's picture

Henceforth, everytime I think of species die-off, I'm going to mentally visualize arbitrage as a part of the picture.

Arbitrage is a fast disappearing species. If you don't have the teraflops, you might as well just get your flip-flops. And watch.



Mon, 02/28/2011 - 13:41 | 1004223 Chuck Bone
Chuck Bone's picture

The clearest possible indication of a bubble is an excess of credit...

Mon, 02/28/2011 - 13:43 | 1004225 EscapeKey
EscapeKey's picture

Anything to fuel the ponzi.

Mon, 02/28/2011 - 13:42 | 1004226 Bob
Bob's picture

While we have yet to see a practical example of what this means, we predict that the implication is a major drop in margin requirements when trading products determined to be a national interest such as Treasurys.

Sounds perfect!  Bueller . . . ? http://www.youtube.com/watch?v=f4zyjLyBp64

Mon, 02/28/2011 - 13:45 | 1004232 Agent 440
Agent 440's picture

OK, can someone kindly put this in pidgin for me?  Does this mean a partial relocation of Wall Street to Chicago?  It seems that in the changing enviroment the Chicago is well postitioned to be one of the first and largest scavengers to the NYSE corpse.

Mon, 02/28/2011 - 13:47 | 1004235 disabledvet
disabledvet's picture

I will forever miss the NYSE being a "not for profit."  I actually think it worked better back then.  Plus it had an the "added dose of humor" aka "honesty" in my book.

Mon, 02/28/2011 - 13:48 | 1004239 buzzsaw99
buzzsaw99's picture

Where kin i git me sum of them there interest rate swap derivatives thingies?

Mon, 02/28/2011 - 13:48 | 1004241 TideFighter
TideFighter's picture

Margins on Sealy PosturePedics growing too. Wonder if it is related?


Mon, 02/28/2011 - 13:50 | 1004247 rlouis
rlouis's picture

Maybe they can fund the deficit... <sarc>

Mon, 02/28/2011 - 13:58 | 1004278 Bob
Bob's picture

Them there is pure animal spirits, boy!  Don't kill the beast with gubmint intervenshun.  This will become a handy new hobby horse of the PPT, but only if National Interest is at stake. 

In the meantime, we have a new way to play! 

Mon, 02/28/2011 - 13:50 | 1004253 buzzsaw99
buzzsaw99's picture

1) borrow at adjustable rate.

2) buy protection

Q: does the dealer need to have an ace showing for me to be able to do this?

Mon, 02/28/2011 - 14:27 | 1004372 NotApplicable
NotApplicable's picture

So, the casino d.b.a. the CME has added a new big-roller, high-stakes room with attractive comps, all for the price of a Treasury? Well, color me shocked.

They probably built it where their PM vaults were.

Mon, 02/28/2011 - 14:42 | 1004420 Rich_Lather
Rich_Lather's picture

When the bond vigilantes come things will get even more interesting.

Mon, 02/28/2011 - 16:09 | 1004689 danimal
danimal's picture

Duh zh u get lower margin requirements when u spread or hedge like long treas and short futures or eurodollars vs short term treas futures. Do u really know that little about markets

Mon, 02/28/2011 - 16:11 | 1004700 danimal
danimal's picture

Duh zh u get lower margin requirements when u spread or hedge like long treas and short futures or eurodollars vs short term treas futures. Do u really know that little about markets

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