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CME Lowers E-Mini Margins
This is simply incredible. 40 minutes ago, just as the farce that is the market was in danger of not closing green despite the tech fiascoes from GOOG, MSFT, CMG, MRVL, AMD, MS, and all the others, we had one simple thing to say:
Some HF is getting a monster margin call right now
— zerohedge (@zerohedge) October 18, 2012
Time for CME to lower ES margins a little more here
— zerohedge (@zerohedge) October 18, 2012
And sure enough, seconds ago...
This whole theater is just getting so very predictable.
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Yeah, you work at the CME.
CME reads ZH for ideas to prop the market.
Maybe with this bit of Deja Vu, Tyler could restart Johnnie Carson's old bit, 'Carnac The Magnificent'.
A: Krugman, Dimon & Paris Hilton
Q: Name a douchebag, a scumbag and hosebag.
-1770
Tyler, you just have more power than you want to recognize! ;)
You wacky conspiracy theorists!
This is an efficent market based on transparent and fundamentally sound valuations, and it could safely afford to trade on much more leverage from a systemic standpoint!
It's not like Bernank didn't learn the Greenspan/BernankVer1.0 lesson of what horrible things inevitably happen when a central fractional reserve planning/pumping authority creates asset bubbles!!!
Now enough of the snark while I go enjoy a delicious Chipotle (CMG) rice-a-rito!
Sheeeeeeesh!!!!!!!!!!
/sarc
#last-muppets-out-r-rotten-eggs-bitchez
#CorzineStillPimpHandStrong
#PendingLarry
PAPER ASSETS!
Get your paper assets!... Low money down!... Help feed the starving beast with a 100% charitable donation!
...name your price...we do!*
* "...since April 2, 2009, when the FASB rules were suspended, the American banking system has been floating on nothing by air. By suspending rule 157, none of the banks have had to admit that they’re insolvent. With the suspension of mark-to-market, accounting rules are now basically mark-to-make-believe."
You are the NEWS!
Predictive reporting, bitchez!
Did someone call for Carnac?
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Fuck them in general.
Fucking amazing.
Nice call, Tyler.
Zer0 Hedge 0racle bless us with your unending wisdom.
Criminal
Mob
Exchange ................... stretching that Ponzi money out just a bit longer along the timeline...
We're going to wake up one morning to a bidless market...
I just checked all my Swiss bullion.
No trouble there today.
Still outperforming the market and everything else.
Well, except for GOOG today.
ES isn't on the list, alas...
Why should I be junked for stating the fact that ES is indeed NOT on the list? Fuckhead.
It's Chicago-style Pizza.....err, politics. Gotta keep O'Bozo in.
Tyler One Small request could you tweeht:
"Time for the Gold Cartel to drop the price of gold below $1000".
I would really like the opportunity to buy on the dip!
Thanks!
Haha wow! Nice call.
http://silverliberationarmy.blogspot.ca/
How come if leverage falls in the market, no one hears a sound ?
Rubicon, you are proof that some people don't quite understand how propping up the market works. If they don't lower the margin requirements massive selloffs to meet the calls would sink the market. It is common sense for anyone who understands our corrupt financial sector as Tyler seems to.
Must....have.....leverage....to....grow......ahhhhhh.....help me I am melting!!!!!!!!!!!
And, Scarecrow just lit himself on fire.
Cue Flying Monkeys ...
Just more leverage to undo on the way down
what a world watta wurilllddd.
Oh no, the markets are down! Halt the indices, it's for the children. Get Wawwen Buffet in here to lull the masses with ukulele songs.
But if the stock market is allowed to fall, ever, it will destroy Helo-Ben's Virtuous Circle Jerk econometric model!!!
They can read charts too. They know there is very little beyond air to support prices now and they're scared. This BS is frustrating but see it for what it is, pure fear.
"I can't come back, I don't know how it works."
"Tyranny is defined as that which is legal for the government but illegal for the citizenry." Thomas Jefferson
Does anyone on this board really think a private bank/government can simply print money out of thin air, QE, without being tied to production? If so, than why wouldn't every citizen in a democracy vote for government to print them their own money...just like it is doing for the top part of the pyramid?
Once we started down the path of QE....the system based on a rule of law failed. Once the rule of law fails, it is only a matter of time before the people figure it out and reject the system....which is now occurring with increasing intensity globally.
When we are all milking off the fraudulent promises of each other, you know its an Udder World.
Uhm... We have a government running a $1.5T deficit and using the funds to support dozens of transfer payment programs for the "less fortunate" and a handful of wars. Not every citizen voted for this, but yes, it's affecting every citizen alright. It ain't just the top of the pyramid here.
People aren't going to "figure it out and reject the system." The system won't allow itself to be rejected. So the alternative happens, accelerating printing and lawlessness until the thing goes kaboom.
Kaboom is inevitable. Kaboom is the only option.
I've seen the future, and it looks like this: http://onastick.net/sitz/images/
Without the printing...EVERYONE would be broke and the top part of the pyramid would look just like the bottom. At that point, we could truly say all men really are equal.
Throughout history, there has always been three forms of money: Love, Trade and Force. Clint Eastwood always possessed all three when he rode into town.
As far as the new shape of our economic pyramid, it would resemble the following: ______________________
Without the printing...EVERYONE would be broke and the top part of the pyramid would look just like the bottom.
Don't be silly. There were rich folks long before there was a Fed or even the USA. There's never been any difficulty in figuring out who's "atop the pyramid."
Leonard Cohen saw the future, too. He said it's going to be murder.
Very well written...and correct. But I'm not so sure "the people will figure it out." When I use the same arguments you wrote above on my well-educated, supposedly intelligent friends, they vehemently disagree. Sadly, the rule of law failed a long time ago in our country. If and when the majority of Americans do "figure it out" and take to the streets, the government will use all those hollow-point bullets it purchased a short time ago, as well as deploy the assault vehicles, drones and "protectors of freedom" it pays to maintain order. American will be pitted against American because the real enemy is us...not the taliban or the so-called "axis of evil" nations.
Cloward-Piven strategy. Occupy was a proof of concept.
Very well written...and correct. But I'm not so sure "the people will figure it out." When I use the same arguments you wrote above on my well-educated, supposedly intelligent friends, they vehemently disagree. Sadly, the rule of law failed a long time ago in our country. If and when the majority of Americans do "figure it out" and take to the streets, the government will use all those hollow-point bullets it purchased a short time ago, as well as deploy the assault vehicles, drones and "protectors of freedom" it pays to maintain order. American will be pitted against American because the real enemy is us...not the taliban or the so-called "axis of evil" nations.
" The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations." Thomas Jefferson
Well, that part's done. What did he say would happen next?
Raise margins....lower margins....does it really matter anymore?
Dammit Tyler, least you could do is Tweet something that could make us some money.
40 minutes warning is fine. Love ya baby.
Like "Just discovered: FAZ is selling at a 99% discount to NAV"
What is most horrifying is not what the CME is doing, it is that 99.99% of Americans still have no clue that our financial markets are totally rigged. They will wake up one morning and their money will be all gone and they will be exceedingly confused and will turn on the TV and some douchebag will tell them some giant fucking lies, and they will believe it.
Unless they own physical.
Physical Definition in the 21st Century:
Food
Water
Guns
Ammo
Booze
Farm Land
Gold
Silver
Anything that can't be printed by the government...etc...etc...etc...
Acttually, owning physical will be prohibited wherever possible. And margins on food&water will be tightened further.
Yes, and Drugs have been prohibited for decades but it is easy to buy/trade them.
If cash is outlawed, only outlaws will have cash.
Not disagreeing with you at all, but you neglected to specifically mention hydrocarbons and capacity for electrical generation.
Finally got 'land' checked off my list this year..
No, Main Street's smart money is out (notice the volumn?)....they are "getting physical".
So are the Chinese, who leaked that (right now) if the US economy collapsed it'd end civilization, but not in 2020 when they're fully detached. (Now that story has been seriously spiked!)
Are we in America or Zimbawe?!!
Rough night ?
If it wasn't for Mugabe(Obummer),we might be better off in Zibabwe.
Might have something to look forward to.
Not to worry, Harare Ben is on the job., and just got some more ink.
They are not even trying to hide the manipulation any more.
Nope, and many of us have been saying the same thing the last couple months -- for stocks, for Au/Ag, it just keeps getting more and more blatant.
All a sign we're getting closer to the end. I can't remember which euroscum said it, but there was a quote along the lines of "when things are this bad, we have to lie."
Things are that bad. Every new economic stat should carry its standard deviviation, with anything over 3 sigma in bold from here on out.
They really never have tired to hide it, the fact is everyone was making money and didn't care until they started losing and then looked for a reason why.
When people are making cash hand over fist they don't care if things are manipulated, once they start getting the muppet treatment their eyes start to open.
The awakening has begun, go long on water and food!
i THINK NEGATIVE MARGINS ARE IN ORDER. WHO IS WITH ME?
Nice call from ZH. This powder keg is gonna blow...
would love to see a historical margin chart (how much looser have they been in the past?). this is positive today, but eventually they have to tighten (and when the market is weak) which will only compound the weakeness. another "flow" issue. Just another cog falling into place in the machine tht will trigger a great crash.
It's not really manipulation son.
You see we control the entire market.
It's planned.
Good grief they are broadcasting that the end is near. Can't let it go down because it will crash like never before.
Why things like this don't scare the bulls I'll never know.
Even with the all powerful Fed backstopping everything, everywhere - we still had major market sell offs in 2008, 2009, 2010 and 2011...why is 2012 different?
Because it isn't 2008, 2009, 2010 or 2011?
Most equity bulls are retarded.
E-mail: info@cmegroup.com
"you sick complicit evil foul manipulative bastards" I suggest everyone write something similarIt's amazing that folks still want to hedge or invest on the CME. Like the stock market, I am out and could care less anymore. Unless it is a tangible asset I have no interest...
~PTB
www.fofoa.blogspot.com
www.lehmans.com
www.silver50.com
somebody im'd me this before i saw it on zerohedge, and i thought it was a joke. holy good christ. they better hope for an emp attack, at least then they'll be able to get out of it with some sort of excuse.
Why 'hope for an attack' when the most-used banner in the closet is a false-flag?
When are CME going to lower the margins on " #CLX2"? If I'm getting reemed on the refined stuff, I should at least be able to save a little on the "crude".
yeah, the markets are an always levitating circus. did anybody see those huge one minute spikes in google after close. wow, wish i had a trap set like i use to back in the amb days.
amb, that was the most funnest for the leasest stock i ever traded. (shorted)
Yes, except for the fact that they did not decrease margins on ES. I enjoy the theater too, but a little accuracy here and there never hurts.
"EMINI S&P 500 EURO DENOMINATED FUTU (EME)" Change: DECREASE.
Hint: there are other currencies besides the USD
oops, somebody got owned, lol
"Leverage! We need more leverage! And a stronger fulcrum!"
All fine and good...except that the euro dominated emini doesn't trade. It's a placeholder so other exchanges can't list it in the future. The CME locks up the 'rights' to the contract by having it listed.
Go check the volume.
Karma Police-arrest these men.
Smells like desperation. Won't be long before all paper assets begin moving towards their intrinsic value...
So much for the free market.
Remain calm .. all is well.
http://www.youtube.com/watch?v=zDAmPIq29ro
Time to lower capital margins for TBTF banks and get back to 40X leverage!
40 X leverage? It's amatuer hour if you don't leverage triple digits these days...
That's what derivatives are for.
I'd take it as a compliment.
This world market management has gone so lost that only two options have remained:
1) Fed and Primary Dealers buy up all S&P and Dow. If that decision is taken, all 13 exchanges will go bankrupt and the next president will have to be annointed as Emperor
2) Have enough luck for Dow to drop 2000 points per day for 5 days in a row so stocks become reasonably priced to re-start trading again.
What do you think is going to happen, 1 or 2?
# 1 for sure, except the prez won't be emperor, but annoited a living god (kind of like Xerxes from 300, minus the barbaric relic gold peircings everywhere)
Truly amazing. Even without the soothsaying.
Its not a conspiracy theory. It is a conspiracy.
Dow at 13,500 and the economy is in the shitter. The middle east is on fire. Europe is collapsing.
Gas at $3.81, food prices rising and rising. Out of control debt , personal and public.
Hope and Freakn' Change !
Oh look, one of the marxist downed me...........
Stealth Marxists and keyboard fear bots roam this commentary.
Interesting timing indeed... but why the Euro futures? Devils advocate; they might be expecting some dollar volatility and want customers to switch into a (ahem) stable euro, possibly expecting some carnage coming up to the fiscal cliff. Okay, commence stoning.
New lyrics from 16 Tons by Tennessee Ernie Ford
I have been getting a shitload of ICE future emails about changes too, but not about margin decreases.
They already made The Onion obsolete... ZH is next
So that should take care of a few of the margin calls tomorrow but they can't do this forever.
They won't. Everything was halted and pushed until after the election is over.
...and if or when Obama is re-elected we can expect more of the same only on a grander scale.
No pres is going to open those FEMA camps during his first term.
"It's amazing that folks still want to hedge or invest on the CME. Like the stock market, I am out and could care less anymore. Unless it is a tangible asset I have no interest…" PowerzThatB
I totally agree. invest in yourself or tangible assets. Screw the market. I don't have time to try to figure it out anymore. There is too much manipulation anyway.
Penny slots open for new players!
Tyler you can hang this call to the hall of fame for understand the market dynamics. YOU ARE JUST BEYOND GREAT GUYS. You should record this moment and open a bottle of champagne, this is well deserved.
25 years ago to the day unlimited credit was granted to those who would buy the market when everyone else was selling. The PPT came to power. A vain attempt to keep the paper wealth generator running full tilt.
Hmmm, what could be going on again day after day after day.
If a business is viable and can support itself based on sales, why does its share price even matter?
If the exchange droped 50%, how does that change the true value of a viable corporation? Yes, you can argue reduced market cap leads to less availability of credit. But a viable corporation should be able to exist without it.
The only way the stock market matters is if the corporations traded are not actually viable business entities without the ponzi scheme propping them up.
substitute corporations with the too big to fail banks and you will begin to understand the dilemma.
Michael Hudson: The Road to Debt Deflation, Debt Peonage, and Neofeudalism
http://www.iadb.org/intal/intalcdi/PE/2012/09985.pdf
You can't fight the bull market. It has become selfaware. It will unplug you long before it ever unplugs.
Unbelievable. The CME/Global Ponzi has degraded itself into self-parody.
Is it still fraud if it's transparent?
If what's transparent is fraudulent, imagine how nasty the opaque shit is.
Opaque, obfuscated, or just plain occult.
So what the fuck do I do with my 401k now? Can't cash it out without quiting, and I don't feel like any option is safe.
Unfortunately, anything can happen with the shit-and-piss financial products that often make up these funds. By shit-and-piss I mean things like Mortgage-toilet-paper Backed Securities and stocks which are up 15% in toilet paper money... but actually down 20% against gold this year.
Also, recent executive orders and court decisions pretty much legalize the outright theft or siezure of any account, segregated or individual, so make sure you don't step out of line.
Whatever it takes.
Risk is just a number to be manipulated like alll the rest now. All you risk managers who thought you made a difference can go home now. Everything you ever used to think matters has been reduced to one index, and you can trade futures on it 24/7 on our latest exchange. Hell, we'll even hook that up to an HFT algo for you. It's all good.
Bernanke and Co. have basically 2 machines to inflate perceived money supply. The stock market, which is very easy to manipulate now and the Bond yield. if stocks crater, then so does money supply,collateral or the wealth effect. The fED is fighting deflationary forces of a massive scale-an event which was created BY THE FED because they simply do not understand what machinery they have. The economic system is based on credit-asset inflation. We have the entire system running in revese with asset values collapsing and credit overhang much larger than all asset values.
If the stock market was allowed to be a real market Google would be at 100. The market died in 2011.
If the stock market was allowed to be a real market and assets marked to market and derivatives were liquidated as well, the stock market would be zero since every "market maker" would be in the process of liquidation and unable to operate.
CME explained in a short 4min clip:
http://youtu.be/vJ08OpCta7k
blind leading the blind baby...
Great way to get some permabulls Bernanke suckers overextended for the adjustment phase......buy buy buy....
Sell signals across the board , from Taiwan and Ausssie to the venerable Nasdaq, with Goog being the posterchild Today!!!
Guys have you noticed that the margin requirements have been decreased for all currencies except the Israeli Shekel which had an increase.
Have noticed the increase in margin in tanker rates??
Have you noticed that Mitt Romney is leading in Gallup Polls?
Happy Anniversary MFG
I'm still relatively new to all this, so it took me a second to figure out wtf was going on. But that is so damn funny--classic.
despite how long I've been reading ZH, every once in a while when shit like this happens...I just have to step back and say again: Damn you guys are GOOD.
Considering the VIX has been low for so long, I'm not sure why they didn't lower margin rates already. There should be a more dynamic model that shifts margin requirements based on daily volatility - as the vol. increases so does the margin and vice versa.. having the CME respond so slowly is quite an outdated model...
This would certainly help any of the spikes we've seen in commodities, as they should have been raising margin requirements as volatility spikes... they need to be current to balance risk vs. maximizing portfolio returns
CME - Its the Chicago way. They are covered as long as the regulators have their back.
Very soon i willbe able to buy stocks without using any of my principal balance. It will be just like zero down for houses and government motor cars
I just have to time the purchases for when I think the whole system collapses so i get everything for free
Let's face it, CME are a bunch of whores who will do anything to get another trade on their exchange. That pretty much goes for any exchange these days.
They will try anything. They would make a market in dead babies if they thought people would trade it. Some of their product ideas that didn't stand the test of time were just about as ridiculus.
The VIX is at 15. For christ sake why do are you all so ignorant on this subject. Margins--------> volatility.
Sometimes a cigar is just a fucking cigar.
Really detracts from your legitimacy when you hype insignificant (and correctly correlated with volatility) margin changes as some grand conspiracy theory.
Fucking knock it off already.
What is the CME? I just realized it stands for Coronal Mass Ejection and this is not good according to the pundits.
You would think a relatively popular financial blog would correctly interpret and understand how SPAN has worked for the past 24yrs. Surely VIX has not been at its lowest level in nearly 6 yrs (pre-crisis) and has absolutely nothing to do with continued broad spectrum lowering of margins. Margin adjusted daily (which is what is implied per topic) to outlier vix sessions makes zero sense for a clearinghouse business. With all the agregious problems plaguing the world of finance, problems which are easily crafted in a truthful/objective manner, why there is a need to succumb to wreckless conspiracy theory I will never know. Only reason you get away with so much inaccuracy is because the majority of your readership are ignorant to the gritty topic facets. I'm reminded of easily molded zombies who watch Fox News/CNN who want the quick fix without performing any leg-work. Similar to Drudge Report, show only topics that fit within ones overwhelming bias. It's interesting how those who apparently stood for contrarian antics and wished not to walk among the flock, have now unknowingly become sheep themselves.
Step back, re-ground yourselves.