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CME Hikes E-Mini And Big S&P, Nasdaq And Dow Jones Margins
Following three consecutive and increasingly more severe margin hikes by Interactive brokers (from Monday, Wednesday and Thursday), it was only a matter of time before the CME joined the party. And even if CME had hiked E-mini margins for all of two or three times since Lehman, whether it is due to recent surge in volatility or for whatever other reason, it had no problem doing so after the close on Friday, when moments ago it hiked initial and maintenance margins on the key market moving futures contracts including the E-Mini and big S&P, Nasdaq and Dow Jones, as well as pages of other contracts (see below) anywhere between 8% and 16%.
Full list of margin changes below:
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Yeah they're doing everything but hitting you in the head with a two by four to get you to pay attention to which way the market is supposed to go now; Down. Fortunately I already have my shorts on the ES; and enough margin.
Can we see 100% margin?
Or maybe we make the Goldman Players put up double their money to cover their bets. If they want to speculate with $1 billion, they got to have $2 billion to cover it.
Man, then we'd see the true value of these ridiculous stocks.
BTFATMH
Not bullish.
Guys, can someone explain this to me in short please? I don't really understand this post, sorry :)
The ante and bets just went way up to get dealt in and be able to stay.
thanks
so now we can't survive without the Crimex either? hahahaha. pathetic. energy flows and profits are so massive and the dollar so weak it's really hard to imagine other than for the "levered up to a billion" set that there's a problem. in fact a good argument can be made that by raising margin requirements your finally starting to separate the good credits from the bad...something that hasn't been true for some time now. in other words "prices paid" or in equity parlance "price to sales ratio" is the gold standard for cash metrics (how markets are actually defined actually.) in the old days when reputations mattered if your stock dropped below five bucks you were considered "a bad credit" and delisted. can't say that's been true for a while...have seen some wild trading in Fannie and Fred the past year actually...not in the debt though. "rock steady" as they say.
and thus it begins. finally.
<popcorn?>
The casino is cutting back on the playerz cashier markers. Not that anybody's going to hit it big,,,,,, somebodys smells collateral deterioration a comin.
.
IB was the first to smell a hint o' smoke in the theater, then detected a slight glow and began to leave, IB then saw a small flame and told his friends it might be a good time to depart said theater.
No one has yelled fire yet but one can bet the scream of "FIRE" is soon to be heard as by releasing this on a Friday, after markets closed and everyone is soundly joined in the Fermentation Committee meeting, Monday is going to be interesting.
That's my take now. YMMV
Sorry for having deleted my previous comment but it was a pathetic one. Your answer just made a bulb spark bright in my head!
thanks!!!
Nah, no worries. YA don't need to delete stuff. Some asshole having a bad day can down-vote ya. ZH ain't a popularity contest and your questions are undoubtedly the same questions a few dozen others have. It ain't like we is in a Karma contest. Peeps don't like what I post, that's their problem as opinions are like assholes, everybody's got one and they all stink.
My personal opinion/hypothesis on these developments is this, and not likely but possible:
The May 6 Flash Crash showed everyone just how fast the shit can get deep. Maybe too fast for even those brokers making margin calls to get out without being underwater themselves on selling, should whatever problem they see materialize.
Could be some other game going but being the eternal pessimist, that is one of my possible thoughts. Either way, I hit the ATM tonight to shore up my cash holdings and reduce my bank holdings.
Could be nothin or somethin, either way I'll deal.
On the ATM comment - I did the same this week. Just to be on the safe side.
Does this mean it is a good time to buy Tesla? My friend said Elon Musk is a genius and that he makes the best cars, spaceships and other shit.
(sarc) Thomas Peterffy of IB is no dummy.
You can BTFATH's....but it's gonna cost ya a premium!
Uh, no thanks.
There, now that made sense. Hey, who am I ... just an IT dude trying to make sense of a new subject.
If you have questions, fire away. Lots of good people here will help you.
thanks, I have learnt a lot from ZH and its "posters".
Thanks to everyone for helping out when I have "silly" questions.
Can't help but feeling like I'm being trolled but, you're welcome.
no no no, trust me - your answer made sense. thanks! no trolling :)
I see your not fully awake yet AS............
Fuck off.
If you've got something to say, spilll it.
So Obama met with business leaders last week, then they increased all margins, they are asking for total surrender from repubs, and Obama is talking down the market. And yet the market is almost at ATH. Are we to conclude that if the market has a historic crash next week, that all business players are going to be found to have benefited tremendously? Are they really orchestrating a historic crash to wipe out the tea party forever? Me thinks so
Just to elaborate, the crash would help the dems by fracturing the repubs, would help the RINOs by making their primaries easier in 2014, would help the FED in giving them the excuse to print at least for another year and reset the whole market super game, and would also help the FED by suppresing yields and making it appear that they are succeeding.
If anyone believes in market manipulation, you have to believe that the only sensible way forward for all those crooks is to crash the thing and blame it on Ted Cruz. Perfect!
Also this is opex week. Bonus
Ted Cruz is a good dude. Fighting Obamacare is admirable and has to be done at one point or another. But what about the military?! Its okay to fund the NSA, TSA, MIC, etc etc, as long as we aren't funding Obamacare? That isn't very Ron Paul like-- the originator of the tea party. It is as easily possible that this charade is created to differentiate the tea-party from the gold ol boys, a differentiation that could be mostly illusionary. This way we get "new" guys, but with the same old leaders and general (lack of) philosophy. I'm certain this is the case with the majority of the tea-partiers, but with Cruz, Rand, Amash, etc, I'm not sure. Its so fucking difficult to figure out the truth with all the politicking. They got the media spotlight like Ron Paul could've only dreamed, if they really believe in the message of liberty its time they stop piddly-paddling and pick up where Ron left off. There is a good quote, I'm not sure if its from Zen and the Art of Motorcycle Maintenance or The Road to Serfdom, but its general synopsis is this: if you have a revolution without changing the minds of the people, the situation will revert to functioning as it did before the revolution in a short time-frame. That is the case here, they are fighting specific policy instead of expansive government itself, so even if we win -obamacare is repealed- no minds have been changed on the root of the problem, that government is viewed as the savior of societies ills. Ron Paul didn't have this problem, when people understood why Ron was right it was an actual danger to the establishment because its logic could be applied elsewhere. Fucking rant ;).
Actually they weren't business leaders, they were bankster racketeers.
Margin hikes by the CME or whats left of the CBOT have always been precursors to people who have built up gains getting cleaned out. At least that's been my un fortunate experience.
Not surprising, given the current politico-economic in the US. It's an effort to reduce volatility, but it will have negligible effect once the real shit hits the fan.
Up after hours.
Pretty meaningless, so don't try to read anything into it. Just look at the momos like YELP, IB hiked margins up 10% from low when they hiked. I could do this for pretty much all the momos that had margin hikes. Meaningless; well actually seems to move the market or stock higher.
Called this months ago... http://www.zerohedge.com/contributed/2013-08-02/margin-credit-charts-and...
A 'market' blown up to fake a recovery is going to turn reason on the dollar if it does not materialize. They have to manage it at some point of no confidence. Like now.