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Yen Spikes On News Japan Set To Impose New Forex Margin Trading Rules
Moments ago the 101 USDJPY tractor beam was broken, sending the pair lower, as a red headline hit the tape saying that...
- JAPAN TO IMPOSE NEW RULES ON FOREX MARGIN TRADING, NIKKEI SAYS
Which incidentally was long overdue: with the BOJ scrambling to contain bond (and stock, if only to the downside) volatility, it was always the FX market that was the primary uber-levered culprit moving both asset classes. As such, it was very surprising that in a world in which all correlated asset classes (just look at the USDJPY-ES relationship) are driven by FX, that currency leverage and margin rules have remained largely untouched by regulators and central bankers whose credibility is suddenly slipping away, alongside the surge in global market volatility in the past week.
More from the Nikkei:
- Changes are intended to protect investors and limit scope for speculation, Nikkei newspaper reports, without attribution.
- Firms to be required to settle trade, even when rate movement favors trader; fine for violation up to 100m yen
- FSA to restrict trading in binary options, will ban trades less than two hrs ahead as early as this yr
- FSA to strengthen oversight of cos. with automated trading systems
While the details are still unclear, it is clear that Japan is finally focusing on JPY vol. Which also means that the days of unbridled soaring of the USDJPY pair are limited. And since the US market has been linked to the Yen for the past month, the spike in the Yen is what has caused a sudden air pocket under the US market to develop.
What happens further: we wait and see for the reaction by Mrs Watanabe in a few hours.
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Here is the dip. Buy it.
Do you really want to bet against an army of Mrs Watanabes (Japanese housewives have been determining the direction of the global markets for the past six months)?
I thought the dip was in the Whitehouse?
he's been bought already, although its possible he's rehypothicated, so maybe you can find him on loan somewhere.
~35% of all global yen flows were secondary to Japanese retail accounts during the last 3 months.
BTW, it will be fun to watch a massive carry trade unwind (maybe even another LTCM blowing up).
Yes it will. The wheels are coming off.
It's a sad day when you can't even figure out who owns you.
No, there are dips all around, it's like a pit fall, better to be avoided and out of sight.
That would be the dip-stick.
The BOJ wants a market like the US where there's no volume so they can easily rig it....
THOSE LULES SUCK!
WATANABE NOT HAPPY!
those rules Ruck.... Fixed it for ya...
"FSA to strengthen oversight of cos. with automated trading systems"
Seen these lads in action and they generaly not he sharpest tools in the shed. What might be of interest here is that the Japan run up was probably something like half HFT. If they set up camp at the HFT shops they might dial some of their more aggressive algos back for a while? If that happens NKY price keeping/inflating becomes the responsibility of Mrs Watanabe alone (and the BoJ, I guess)?
Me margin you long time!
Can we please just skip ahead to the hyperinflationary collapse, bank closings, grocery stores shuttered, and let the SHTF? I don't have all decade.
I hope you have a faraday suit when that happens.
LOL....so true. It is so painfully obvious to all of us here on ZH...the status quo long ago failed. And now, four years later, the theatre of the "recovery" is so obviously a joke...it feels like that...waiting for the truth and the pain of such colossal failure to finally arrive.
It will...just as soon as a few hedge funds get wiped out on the Yen carry trade...which shouldn't take too long.
And doesn't that sound familiar...the busted Yen carry trade? It should.
Why bother keeping the illusion of actual markets? Tell us what the prices will be and cut out the pretense.
Russia and Ukraine sending 72 000 ``volunteers`` soldiers to fight alongside Assad?? wtf?? Just like China sending ``volunteers`` to fight alongside the NKoreans in the Korean war? This could get real nasty.
http://www.liveleak.com/view?i=311_1369928086
So the `volunteers` recieve guaranteed Syrian citizenship.....or perhaps they become Assad`s pallace guard / babysitters while still dancing the Putin tune. Assad has no choice; but he must have reservations?
Either way if true (& I have no reason to doubt it) the rebel forces (Quatari, US, UK, French $ Isreali mercenaries) are going to get some serious trouble.
Meanwhile the Syrians who have not fled or taken sides will have to do so soon.
I would love to see Obamas reaction to this news, and bloody William Hague (UK regime changer in chief - I mean foreign minister)
I bet some of these ``volunteers`` will be specialists to man the S-300s...
You. Know. Nothing.
You really think Moscow would advertise this via LiveLeak? Are you stupid or paid? Who the HOLY FUCK would want citizenship of Syria at this point in time? How many Chinese do you see queuing up for an Afghanistani passport? How many refugees are in Turkey / Jordan wondering why they couldn't escape to the UK / Greece / EU due to their passports?
Seriously? You're either functionally retarded or paid to do this. I hope it's the latter, otherwise...
So it will be 72,000 soldiers of fortune not a Russian invasion.....yea right. Kill themall.
Works in reverse too...
And I bet all the NATO-Qatar-Saudi Arabia funded, armed and trained terrorists are not a western invasion, but soldiers of fortune? Yeah right.
Please, get a grip. Here's a crash course. (And yes, that's pro-Western bias).
There's a multiplicity of actors on this stage, and while some of them are indeed what you stated, your grasp of the complexity is extremely limited.
Yeah... whoever made that should have remembered the old style Ukrainian Hammer and Sickle was yellow on blue, the orange is a wrong note.
I re-read Dispatches the other day. I'd suggest you find a copy & bear it in mind. Wise words in this link.
Re-post, but really? You even know who that man is, or if he's not just a Russian speaker living in some other country close by? Things to ponder, things to ponder.
Russia and Ukraine have no "volunteers". You have to serve 2 years. Period, You can't say that you have something else to do.
Now, for the right price many will go.
The volunteers ain't about their enlisting policies but about how they ``volunteer`` to go fight in Syria.
Seriously, you have any real evidence barring a shitty video I could make in Iceland if I had a rough knowledge of ancient Soviet symbols (that haven't been used for over twenty years and certainly not in the armed forces of either Russia or the Ukraine, which are different countries now, you muppet, although we did like the Orange flag tint to trigger your pitiful knowledge of the Ukrainian Orange Revolution), a 19 yr old art student who made the flag wrong (Hammer & Sickle with an Islamic Star over it! How. Fucking. Childish, and it's the wrong fucking colors) & a Russian speaker who I might pay a bottle of vodka to? (Not even going to comment on the accent dear: hint, it's a give-away).
And yes, I'm calling you out on your bullshit. Noticed it heavily in the cyberwar / hack stuff (seriously: 8 hrs after I posted my rebuttal, numerous serious Western cyber security outfits came out agreeing with my thoughts, stating: "Nah, this story is shit, it's being leaked to push an agenda, ignore it". I suggest you go find them all - I've counted 7 so far. Or I could post them and gut you).
Who is paying you btw? I refuse to think you're this dumb for real, call it my bias for keeping your species around. RAH RAH RAH WAR WAR WAR.
Fucking spook. It's sad your training is so shit, or that you think that American rhinos will fall for this level of unsophisticated mimetic warfare. Get another job. At best this is silly pro-Assad morale boosting, at worst it's a shitty M-OSS-AD OP taking the piss out of dumb GOP members like McCain. You're out of your pay grade, I'd suggest a retreat. But, hey, I'm bored: let's play by the 8 rules.
Please come at me, let's see what you've got. Otherwise, STFU, you're a muppet.
p.s. Yes, we get the Avatar. Now fuck off before I crucify you; you're burnt.
We need margin increased on trading EVERYTHING here!
looks like a usdjpy go to 96 and eurusd 1,35
that should do wonders for the nikkei.
Yeah watch all the gains get vaporized and then some.
I almost can't get past the thought of their stock market vaporizing while their currency gets the benefit of getting bid, as well as their stock market. I am waiting for them all to go up in smoke in unison.
Now if the yen spikes and their market goes up while bonds stay stable I might just take the blue pill.
Sorry I meant to say as well as their bond market.
It seems like everyone is choosing between the Nikkei and the JGB market and the Yen is the deciding factor. I am waiting for the moment the Yen sells off, the Nikkei sells off AND JGB's sell off.
Granted I may be waiting a while but I have been waiting 4 years already....
I am starting to feel like this guy.
http://www.youtube.com/watch?v=aPwGvzhUkB0
queue kyle bass Oh-face.
Off topic, anyone else notice Haymon dumped over 20% of total holdings? All their real estate stuff...
Based on what I've read about the changes, they don't really seem to be anything substancial. Eg; no changes in spot leverage ratios.
I know this was over 3 years ago, but didn't a yen spike precede the flash crash?
What a boring day in the markets http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=logarithmic&chdeh=1&chfdeh=0&chdet=1369944000000&chddm=1144&chls=IntervalBasedLine&cmpto=NYSEARCA:USO;NYSEARCA:XIV;NYSEARCA:GLD&cmptdms=0;0;0&q=NYSEARCA:SPY&&fct=big&ei=Pq6nUei2Goqu0AGF0AE
Does this indirectly kill the Gold spike?
I hate to say it but if everything goes to shit and the banks somehow managed to get net long gold, those holding paper gold may enjoy a nice free ride higher.
Present market conditions seem to indicate that folks are selling paper gold (GLD) and buying physical ...prices of physical is at a premium to paper and volume of physical buys is going through the roof. Once the physical buying overwhelms the GLD shorting, add in some margin increases and presto.. historical short squeeze in GLD and price of both going north fast. Theoretically.
50,000 troups heading to Synria from Ukraine.
http://www.liveleak.com/view?i=311_1369928086
Yeah... whoever made that should have remembered the old style Ukrainian Hammer and Sickle was yellow on blue, the orange is a wrong note.
I re-read Dispatches the other day. I'd suggest you find a copy & bear it in mind. Wise words in this link.
Isn't 'Forex' a condom brand?
Is this the first small and innocuous-looking step towards capital control?
http://nipponmarketblog.wordpress.com/
@NMB
I don't know about you, but I should have 90% of my holdings out of Japan by next Friday. None too soon, methinks. Screw Abe and his money trap.
another form of cap controls if you really think about it.
Forex margin trading rules....sounds like a capital control to me.
Step 2: Ban short selling.
Step 3: Capital controls.
Step 4: ?