IB Blasts Preemptive Margin Hike Warning

Tyler Durden's picture

The brokers are getting pissy again - it must be that time of the month again....when vol is about to surge. In a blast to all exchange members, Interactive Brokers has just warned of imminent margin hikes due to "the recent spike in volatility of various commodity products." Of course, expecting vol (just like inflation), one can argue, is more important than even experiencing it. And it promptly becomes a self-fulfilling prophecy. In other words, should other brokers and/or exchanges follow suit with this preemptive margin hike warning, it may be time to step to the sidelines. Then again, in centrally planned, manipulated stock (and now all other) markets, this is easily the best decision regardless...

Full IB email:


Tue May 24 13:52:36 2011 EST

Please be advised that, in light of the recent spike in volatility of various commodity products, and in an effort to more accurately reflect price risk for such contracts, we will be enhancing the methodology used to identify and price this risk. As a result, the house required margin may be greater than the Exchange-required margin in specific, high volatility products. In order to minimize the impact of this enhancement, any margin increases will be implemented gradually, beginning with today's intra-day parameter refresh. Please monitor and manage your risk accordingly.

h/t London Dude Trader

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TheGoodDoctor's picture

True, but this is like the government saying it's an issue of National Security.

TruthInSunshine's picture

Don't worry b/c Eric PlaceHolde & Team Obama caught the evil oil speculators who were interfering with Bernanke's brilliant monetary policy implementation (hint, don't look for JPM or GS anywhere in the thick plot)!!!!!!!!


US Commodity Regulator Sues Oil Traders
TheTmfreak's picture

This is the laughableness of central "market" values for items. Gaming the system because there is a system to game.

dbach's picture

To be fair to the CME, after the smashing in the first half of May, silver is much more stable now. There has been almost no vol the last 7 days. A good time to go long calls with the low vol.

ffart's picture

Looks like silver popped a boner on this news. How can they go after oil speculators when THE OIL SPECULATORS WERE IN THE WHITEHOUSE ALL ALONG??? (ghost noises)


Franken_Stein's picture


United forever in friendship and labour,
Our mighty republics will ever endure.
The Great U.S. Union will live through the ages.
The dream of a people their fortress secure.


Long live our American motherland,
Built by the people's mighty hand.
Long live our people, united and free.
Strong in our friendship tried by fire.
Long may our crimson flag inspire,
Shining in glory for all men to see.


Soul Train's picture

And let Texas be the first to leave the federal government tyranny and charade.

LawsofPhysics's picture

I agree.  Let's get the intel on the weapons used to crush those "terrorists" before the rest of us try to leave.

Missing_Link's picture

Wow.  Remind me to never, ever, ever use Interactive Brokers.

CD's picture

I dunno. Another way to look at it is that this brokerage is attempting to level the playing field by telegraphing to the little fish what the inside players know hours/day earlier.

RobotTrader's picture

Yep, there was a slight uptick in the CRB Index today, so the "inflation fighters" at the Fed are putting the word out to all the wire houses to "get ready to rumble" with more margin hikes.

RobotTrader's picture

Next step will be to raise margins on all put options in the following sectors:





Consumer Discretionary

Fiat2Zero's picture

I have to agree. Only taunts that worked when I was in high school are appropriate for the mome-ster.

HelluvaEngineer's picture

Can you post a chart of BIDU?  Bullish close.

Quinvarius's picture

Translation:  We trade in a sandbox vs our clients and they are kicking our asses.  We feel it is time to return to the scene of the crime and double dip.  We promise we will stop when we break even.

So who is really the degenerate gambler?

XenoFrog's picture

Silver, when it goes up, it's dangerous volatility.

When it sits at $35 for a week, it's dangerous volatility.

When it falls 30% in a couple of weeks due to their manipulations in the market, that is healthy market behavior.

Fiat2Zero's picture

Be super careful with "Satan's Metal". Not only is it volatile, but it can damn your eternal soul to hell.

XenoFrog's picture

I am impervious to silver bullets. 1000oz silver bars on the other hand...

Rynak's picture

Wait, blythe is satan? I thought that position was already taken by Ben?

old naughty's picture

so what would you call this we are in?

Fiat2Zero's picture

Better get on the horn to Asia, because your trading session is almost over.

The panic is palpable.

PaperBear's picture

Would the last trader to leave the futures market please turn the lights off.

RobotTrader's picture

Notice the panic selling into the bell by the commodity stocks.

Can't blame them.

Why stand in front of a moving train operated by Uncle Gorilla, who is bound and determined to run over all commodity speculators?

SheepDog-One's picture

'Panic selling'!!! Oh wait....hardly down at all, most commodities up....just more drama from ZH lead drama queen MomoFader.

Fiat2Zero's picture

Panic selling by JPM to bang the close on silver, sure.  Don't worry momo, they manage to cancel most of the 10,000 trades they do, so it doesn't cost JPM too much (so your checks will keep coming).

And here it comes folks, the predictable pseudo-panic selling in the last minute of trading...wait for it...wait for it...

Blythe is one predictable bitch.  She should vary the shit up once in a while.

Glasgow Gary's picture

SLV vs SPY. Over the next 12 months. The former will outperform. See you here next May.


Confucious 222's picture

OK, so do the HFbots get a litlle more juice when everybody else gets a margin hike?

I'm picturing Turbo Tim and Benny Bux at the Lionel transformers, pushing the levers all the way to "10".

Of course they are wearing their engineer coveralls and caps.

Confucious 222's picture

OK, so do the HFbots get a litlle more juice when everybody else gets a margin hike?

I'm picturing Turbo Tim and Benny Bux at the Lionel transformers, pushing the levers all the way to "10".

Of course they are wearing their engineer coveralls and caps.

LRC Fan's picture

Terrible looking close for the bulls...probably means we'll be up 125 tomorrow.  BTFD bitchez

SheepDog-One's picture

Probably means you have no idea what youre doing.

HelluvaEngineer's picture

Using the "Technical analysis is a tool for baiting shorts" theory, he's probably correct.  They'll just pump in an extra billion after hours to guarantee the "Futures are up, indicating that the recovery is intact" morning news.

Glasgow Gary's picture

The war for JULY sillver is about to begin.


Franken_Stein's picture


Since America is now officially having a centrally planned economy,

with a centralized power structure whose iron grip emanates from Washington into all corners of the nations,

we cannot suppress an urgent feeling of pride and amusement that we now have finally reached our goal

that we have been persistently pursuing for over a century now since 1910,

when we first got together on Jekyll Island, where we drew up the plans to intorduce a central bank in the  then virgin-like United States,

built on the principles of those we had already established throughout Europe.


So please, Ladies and Gentlemen,

I ask you to rise from your seats,

to place your hands on your chests over your hearts,

and sing with us the national anthem of the Great American Union:




A-hahahahaha !


Sudden Debt's picture

Anybody who has a brain is putting his/her money into commodities. They'll always be worth more than the FED cotton.

And time is ending. It's not like they can prepare for another few Q's or even a year.

Anybody who doesn't own AT LEAST 20% of his/her assets in PM's is a fool these days.



SheepDog-One's picture

Exactly, and dont forget the not so precious metals as well formed into things like AR 15's and ammo!

mayhem_korner's picture

Those are the most precious ones to me...

Au_Ag_CuPbCu's picture

They're all precious to me :)~

Doyle Hargraves's picture

Have Gun(s)...will travel! (A lot of ammo, too!)

Ecoman11's picture

Ohhh they must be talking about this spike from today.


Fiat2Zero's picture

Nice graph. Maybe I'll go long lumber (its going to attract a lot less attention than S-I-L-V-E-R...shhhh).

Fiat2Zero's picture

Is anyone else watching the minute to minute action of the silver and gold charts at the close? There is an epic battle going on.

EDIT:  The silver beach ball just keeps popping up with every attempt to keep it down.  It's intermission time, everyone grab some popcorn.  The real show will start on Asian hours (remember those sucker Chinese who are hoovering up the silver - don't they know you can dig it out of the ground for 5 bucks?).

EDIT:  I think someone is fucking around with Blythe and is going to thwart her standard bang the close.  People, if you want to play the game, the last thing you should be is 100% predictable.

Fiat2Zero's picture

Since the CFTC can't find it's proverbial ass with both proverbial hands, it's doubtful this will go anywhere.

However, it's great grist for the re-elect the president effort.

And it seems to me there is already a CFTC investigation in the queue on Silver manipulation by the Morgue (that's manipulation _downward_ - just thought I had to be explicit with the replicant momofader, lest he get confused).

This will all blow over soon and they can go back to surfing porn during work hours.

Ecoman11's picture

The war is on physical stockpiling. Read how the UK Parliament openly admits there is a "Monopoly Supplier" in the metals market.


Fiat2Zero's picture

Now who could that supplier be selling all that paper silver...let's think...

Ecoman11's picture

Exactly, the same people who cornered %80 of the copper warehouse supply. So hoarding a commodity is now considered illegal except for bonifide hedgers.

TruthInSunshine's picture

If no one buys the sell siders bullshit, commissions go way down, and baby needs a new pair of shoes!

Uncle Bernanklecide, can we get POMOonSteroids for the Wall Street WIC?