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

Tyler Durden's picture

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CPL's picture

Like watching a shell game.

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":

http://www.capitalresearchinstitute.org

"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Money that would have been kept in savings accounts has been withdrawn (because it earns no interest) and invested largely in stocks, and commodities.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!"

plocequ1's picture

Let me guess. The Taxpayer?

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.

ORI

http://aadivaahan.wordpress.com/2011/02/27/the-fascinating-dr-chippalone/

Chuck Bone's picture

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

EscapeKey's picture

Anything to fuel the ponzi.

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


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.

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.

buzzsaw99's picture

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

TideFighter's picture

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

 

rlouis's picture

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

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! 

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?

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.

Rich_Lather's picture

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

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

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