• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

CME Hikes Nikkei-Associated Margins By 33%

Tyler Durden's picture


Two years ago it was only gold and silver that saw the CME's wrath on a daily, and sometimes hourly basis. Back then, however, it was due to soaring prices. Today, it is due to the bone-crushing price collapse in the Nikkei which has just seen the CME hike most Nikkei-related outright futures margins by 33%. So not only will those who resume trading Nikkei-related products in the futures market see a big loss in their P&Ls, they will also have to post some 33% more margin. We can only hope they still have some collateral and aren't margined up 100%. That would not be good for the Japanese pennystockmarket and "experiment" no matter how much good luck Jens Weidmann wishes them.

Source: CME

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Thu, 05/23/2013 - 16:54 | 3593646 Frastric
Frastric's picture

Muppets getting fleeced.

Thu, 05/23/2013 - 16:59 | 3593659 bania
bania's picture

just sell your gold and silver to cover collateral requirements. problem solved.

Thu, 05/23/2013 - 17:00 | 3593668 Frastric
Frastric's picture

Paper gold and silver you mean. That crap is naught good save for toilet paper.

Thu, 05/23/2013 - 17:09 | 3593704 kaiserhoff
kaiserhoff's picture

That's sure to help liquidity and orderly markets. 


Thu, 05/23/2013 - 17:50 | 3593804 Panafrican Funk...
Panafrican Funktron Robot's picture

Yeah, really at both ends.  The trade up to this point has been short JGB's long Nikkei.  If short JGB's isn't working hard enough to contain Nikkei losses, the unwind is going to be brutal.  This thing is kind of already going off the rails, if the China copper situation thing gets some legs, black swan bitches (there are some TBTF's tied up in both of these fiascos).  

Thu, 05/23/2013 - 16:56 | 3593651 SILVERGEDDON

Ha ha ha ! We flucked up, velly good ! Ha ha ha !!!

Thu, 05/23/2013 - 16:57 | 3593655 Cdad
Cdad's picture

That's just fine because as Maria Bartiromo has FIRMLY ESTABLISHED...it's a "buy on the dip mentality."  Buy on the dip mentality.  

Buy on the dip mentality.  Buy on the dip mentality.  Buy on the dip mentality.  Buy on the dip mentality.  Buy on the dip mentality.  Buy on the dip mentality.  Buy on the dip mentality.  Buy on the dip mentality.  Buy on the dip mentality.

Do you hear that Mrs. Wannabe?

Thu, 05/23/2013 - 17:01 | 3593667 LawsofPhysics
LawsofPhysics's picture

Yes (of course my "dip" is now 600 on the S&P, perhaps she should take her top off and be more specific).

Thu, 05/23/2013 - 19:36 | 3594077 drdolittle
drdolittle's picture

Why does that give me flashbacks from "There's something about Mary"

Tight little package, affirmative, drops binoculars...

Thu, 05/23/2013 - 17:03 | 3593679 Dr. Engali
Dr. Engali's picture

So you said to sell the rip. got it.

Thu, 05/23/2013 - 17:09 | 3593701 ParkAveFlasher
ParkAveFlasher's picture

If you playback Maria saying "buy the dip" in reverse, she says, "my sweet satan".

Thu, 05/23/2013 - 17:16 | 3593717 Cdad
Cdad's picture

Buy on the dip mentality.

Thu, 05/23/2013 - 17:32 | 3593762 Bastiat
Bastiat's picture


Thu, 05/23/2013 - 17:32 | 3593764 Quinvarius
Quinvarius's picture

"Pity you"

Thu, 05/23/2013 - 16:59 | 3593660 Its Only Rock N Roll
Its Only Rock N Roll's picture

Japan open for trading Monday (Sunday night)?

Depending on what happens tonight could be an interesting day Monday with no US trading happening. 

Thu, 05/23/2013 - 17:01 | 3593670 LawsofPhysics
LawsofPhysics's picture

Hell, tomorrow will be a hoot.

Thu, 05/23/2013 - 17:07 | 3593692 Cdad
Cdad's picture

Buy on the dip mentality.

Thu, 05/23/2013 - 18:11 | 3593848 Bay of Pigs
Bay of Pigs's picture

You're gonna milk that one for awhile huh? Haha...

Thu, 05/23/2013 - 19:29 | 3594052 1000924014093
Thu, 05/23/2013 - 17:08 | 3593696 Its Only Rock N Roll
Its Only Rock N Roll's picture

It could be.  Just moar interested in seeing what happens when US markets and the NY Fed is closed for trading. 

Japanese CB has been prepping all night/day for the JGB Friday session.  Wonder how much they have to swallow on the open. 

Thu, 05/23/2013 - 17:14 | 3593700 Ham-bone
Ham-bone's picture

Sunday night BOJ to announce that QE has been enlarged (doubled???) to allow them to control JGB selling (push yields to pre-QE announced levels).  They can't allow the sellers to overwhelm their buying efforts.  $3.5 billion / day not nearly enough in a now motivated $10T JGB market. 

It (the beginning of the end) is fucking on...Yen is going down in a hyperinflationary blaze of glory.

Thu, 05/23/2013 - 17:17 | 3593719 Cdad
Cdad's picture

Buy on the dip mentality.

Thu, 05/23/2013 - 16:59 | 3593661 The Shootist
The Shootist's picture

30% CME hikes are always good for price stabeelitay.  Luckily for the Japs, I don't think CME has a monopoly on trading there.

Thu, 05/23/2013 - 17:01 | 3593673 Dr. Engali
Dr. Engali's picture

The CME board must have massive short positions on the Nikkei.

Thu, 05/23/2013 - 17:08 | 3593697 Cdad
Cdad's picture

Buy on the dip mentality.

Thu, 05/23/2013 - 17:52 | 3593809 Panafrican Funk...
Panafrican Funktron Robot's picture

Giggling like a schoolgirl here.  Too fucking absurd for words.

Thu, 05/23/2013 - 18:15 | 3593864 Cdad
Cdad's picture

Buy on the dip mentality.  

Thu, 05/23/2013 - 17:02 | 3593674 ParkAveFlasher
ParkAveFlasher's picture

Cash-n-carry, bitchez!

Thu, 05/23/2013 - 17:08 | 3593694 firstdivision
firstdivision's picture

This pic describes history http://imgur.com/yrMzXwV.jpg

Thu, 05/23/2013 - 17:11 | 3593695 LMAO
LMAO's picture

IMNSHO There's no love lost for those over-levered margin-financiers

Thu, 05/23/2013 - 17:15 | 3593714 Seasmoke
Seasmoke's picture

They are shaking the Japanese Maple Tree

Thu, 05/23/2013 - 18:04 | 3593832 thismarketisrigged
thismarketisrigged's picture

all i know is s&p, dow, and nasdaq will be green tomorrow.


does not matter if nikkei fell 2000 tonight. its all bullish

Thu, 05/23/2013 - 18:10 | 3593845 laomei
laomei's picture

Looks like they learned their lesson.  You can push gold and silver to 100% margins, and it won't stop the advance.  But you can jack up the margins for literally everything else and do some nudging with strategic shorts to crash that price over and over again regardless of actual physical demand.

Thu, 05/23/2013 - 18:23 | 3593887 villainvomit
villainvomit's picture

Maria has been buying the dip alright.....and chips and salsa......and ice cream......and chocolate......and twinkies...oh my.

Thu, 05/23/2013 - 18:37 | 3593936 WallowaMountainMan
WallowaMountainMan's picture

quit the margin crap and make everybody put up full amount and 10% to boot.


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