The Russian Ruble Is Hereby Halted Until Further Notice

Tyler Durden's picture

Earlier, we reported that various currency brokers such as FXCM and FxPro, would - as a result of the soaring liquidity in the USDRUB pair - suspend trading in the Russian Ruble (while other merely hiked margins to ridiculous levels). It appears things have escalated again, and as FXCM just reported, instead of just politely advising clients not to open new USDRUB position tomorrow, it has advised anyone long, or short, the USDRUB that their positions will be forcibly shut in moments.

So for those curious why there appears to be a collapse in Ruble volatility in the past few hours which in turn has sent both stocks and crude soaring, the answer is simple: nobody is trading it!

And this is what happened following the post: as soon as all those short the RUB (long USDRUB) realized they have to take profits, the USDRUB tumbled some 500 pips (!) in the process sending stocks surging.


h/t @Paul_Courtney

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VATICANT's picture

Que the new system in..

Publicus's picture

One unit of oil = one Ruble. Checkmate, NWO.

Truther's picture

Goodbye SWIFT. Watch the SHTF in 3...2....1...

TruthInSunshine's picture

The new abNormal "markets."

They'll cut your cock right off. Thanks Central Banks!

Alhazred's picture

us already beat them to is

 

USD/COCK

trading has been suspended in all places except nevada.  get with the times

Divided States of America's picture

ekm is right on this.....the entire financial system is just an effin video game

just like playing Super Mario Bros and jumping up and down until a koopah freezes Mario, and then suddenly it goes GAME OVER.

Buckaroo Banzai's picture

"Please be advised, going forward you will not be allowed to profit on any long RUB trades. All losses to date, however, will be cheerfully booked. Western banks will now take the long side of all RUB trades in anticipation of the massive adjustment the other way. Thanks for playing, we couldn't have done it without you!"

nope-1004's picture

No financial war going on at all.  No, nothing to see here.  These are all normal markets.

FFS.

847328_3527's picture

Dear Valued Cutomer,

 

Most banks have stopped trading rubles. Time for you to disintermediate back into MFGlobal.

 

Ur Trusted banker,

The Honorable Corzine

Herd Redirection Committee's picture

"Turn those machines OFF!  I SAID, turn those machines off!"

SWRichmond's picture

The pace certainly does seem to be picking up, doesn't it?

El Vaquero's picture

If goods don't cross borders...

Manthong's picture

State and the Fed think they are real smart putting the squeeze to Russia.

They will end up with crap all over their collective faces like they did with Crimea because Putin won’t take their eastern Ukraine Nazi bait and Russia knows how to survive tough times.

 

El Vaquero's picture

Our current trajectory is consistent with pushing and pushing until we get war.  Putin is a masterful chess player, but what do you do with the guy who knocks all of the chess pieces over, grabs your collar and cocks his fist before check-mate has been called?  Putin is no angel, but we aren't living up to our supposed values here, and we can force the situation.  I fear that we may be moving onto a conflagration where there are no good guys, only those who are self interested greedy fucks who have started something that everybody wants to end, yet nobody wants to see what the end is, and those who are trying to survive. 

Lore's picture

Would be a shame to see America bombed all to hell someday, but that appears to be the desired path unless / until psychopaths are forcibly removed from power.

Jeb Bush announces his presidential run today. Conditions under the current deviant are going to seem like a Sunday picnic compared to another Shrub.  Enjoy your war, you psychopath-loving, warmongering, degenerate human garbage.

Son of Loki's picture

Not only Russia has funding problems:

California controller warns of $72 billion unfunded retiree benefits

http://news.yahoo.com/california-controller-warns-72-billion-unfunded-re...

El Vaquero's picture

Look at on the bright side:  The kind of bombing that we'd receive is the kind that would either destroy or make useless all of the infrastructure that the so called elite use to control everything that they can.  They still have to eat, breath and shit like the rest of us, and their paper wealth would evaporate in 30-60 minutes.

gold-is-not-dead's picture

when shtf they will not belive it...

James_Cole's picture

US&A crushing putin a little too much, who knows what he will respond with...

Philo Beddoe's picture

Have at least a month's worth of cash at home just in case. 

Freedom In Your Lifetime's picture

I see a time in the near future where it would be prudent for every individual to hold all assests in physical form, that includes cash. With the derivative insurance that just passed and the currency war that is on the face of it, Russia vs. US, but in reality it is probably worldwide, the last entity I would trust to hold my money would be a bank. Just some food for thought.

El Vaquero's picture

Cash?  Currency wars have a tendency to turn into trade wars which have a tendency to turn into war wars.  Seed and a map of places likely to not get hammered by fallout may be in order here.  Should this go hot, everybody downwind of SE  MT, ND, NE is fucked.  That shit will get hit hard and probably with groundbursts, which lead to the most fallout. 

BlindMonkey's picture

Somewhere in Manhattan Randolph is handing over his lost dollar bet to Mortimer.

GRDguy's picture

I kinda thought this was how Bush and Obama were elected.

Sort of reminds me of the Koch brothers.

Leopold B. Scotch's picture

Uhhh... If you're talking currency profiteers, look no further than Geroge Soros, who devestated Asian currencies for his own profit.

Ahoy Polloi's picture

 "Somewhere in Manhattan Randolph is handing over his lost dollar bet to Mortimer"

 

Umm ~ that would be PHILADELPHIA. (Same place where Simon Black's Rouchefoucauld gets you 50 bucks)

BigJim's picture

Can soomeone please explain how this Ruble collapse is being orchestrated. Don't Russia's energy customers need Rubles to buy Gas/Oil? Doesn't that put some kind of floor under the Ruble price? To crash Rubles, are current possessors selling them, or are they being shorted naked? Could Russia - the only issuer of Rubles - then engineer some kind of short squeeze if their CB has bought all the Rubles on the market?

NotApplicable's picture

From what I've read, all oil sales are in dollars.

CrazyCooter's picture

Russia sells oil in dollars, but produce oil in rubles. So, if you are an oil company, in Russia, you sell your product (dollars), convert to rubles, and pay your workers. If you need foreign tech, you likely pay in dollars (savings from product sales that were not converted).

Given banks lend (i.e. create money from nothing) in all currencies, and there are accounts out there with balances, one could borrow Yen at 0%, and short rubles. Lever this position and the more the ruble goes down, the more there is to make. FX is a very large market, but it doesn't mean things can't be pushed around.

Russia pulled a Volker and jacked rates, so whoever was (naked?) shorting the ruble was completely fucked if they didn't get out of their position about as fast as possible. Count the MINUTES between the rate hike announcement, the open of markets (in the US), and the shutting down of USD/RBL trades so they could cover.

Very, very connected players.

So, yes, Russia DID short squeeze and the US pulled another MF Global style save of their insider asses at everyone elses expense. But I think this is more a sign of weakness than anything else because despite their "insider-ness" they totally didn't see this coming so maybe they aren't really all that clever.

All that said, if Russia is pushed out of the dollar market (i.e. all the other nations go along with the USD/RBL suspension) they will be denied the ability to participate econnomically with many other businesses/countries.

If it gets to that poinnt, and your BRIC style countries abandon the dollar, it is pretty much a set up for WWIII. But for now, it is in a sense a "hot" financial war going on, not fully kinetic yet. But the risk is growing.

Regards,

Cooter

 

BigJim's picture

Thanks for the reply, CC. Just had a look at the chart and I do believe you're right - looked like USDRBL was edging back down when they pulled the plug... ie the shorts were getting hammered.

Fuck me, the corruption really is total. I already knew that already but somehow every fresh reminder is still shocking.

spinone's picture

If you lose, your money is gone.  If they lose, they take the ball and go home.

Sometimes the only way to win is not to play.

graveheart's picture

All timed perfectly with the taxpayer guaranteed bailout.

angel_of_joy's picture

... if Russia is pushed out of the dollar market 

How do you know it wasn't the Russians themselves who pulled the plug ? Maybe they decided to stop the bleeding of their FX reserves, and stopped making good on the ongoing FX contracts. If there is no counterparty to anwer your bid, you're kind of screwed, aren't you ? Maybe they decided to stop floating their currency, and move to a Chinese style of conversion... I could see quite a few losses in the big boys trading desks right about now. Also, all western bank could kiss their Russian "assets" good bye. To me it looks like an intentional currency default from their part...

Charles The Hammer Martel's picture

You are the smartest man in the room. Putin is much smarter that the western propaganda gives him credit for. Like most consequential leaders he has already told us exactly what he planned on doing, that includes doing away with the necessity to use US dollars in every possible arena. Why else would he be going around to China India Kazakhstan, Uzbekistan... signing all sorts of new economic trade agreements? I have a feeling The US, EU team is going to be very disappointed soon.

Charles The Hammer Martel's picture

You are the smartest man in the room. Putin is much smarter that the western propaganda gives him credit for. Like most consequential leaders he has already told us exactly what he planned on doing, that includes doing away with the necessity to use US dollars in every possible arena. Why else would he be going around to China India Kazakhstan, Uzbekistan... signing all sorts of new economic trade agreements? I have a feeling The US, EU team is going to be very disappointed soon.

Anasteus's picture

Brilliant thought, angel!

sprintjump's picture

So, does this mean that the rubles sitting in my safe, are down the line, gonna make me giggle all the way to my favorite bank?

El Vaquero's picture

This isn't just a hot currency war.  Think Southstream and a natural gas pipeline that cannot go through Syria.  This is an out and out trade war.  Barring black swans that renders one or all of the players incapable of waging war, one side is going to have to look at the other side and say "cut your shit, or we're going to start bombing things."  My hope is for the black swan to hit first.  I don't like fallout very much.

HardlyZero's picture

Sounds like a Dr. Strangelove plot.
News at 11.

KnuckleDragger-X's picture

Yeah, no fair trading Rubles unless we can get a big cut......

Smiddywesson's picture

Correct me if I'm wrong, but aren't options still available on these currencies?

spankfish's picture

"From: usmessage"

WTF is that?  This has all the smell of the three letter people playing Russian Roulette.

 

Alhazred's picture

http://www.bgasc.com/product/1-oz-gold-bars-sealed-new-with-assay-card-by-opm-ohio-precious-metals-9999-fine-24kt-gold-bullion-gbar_1_oz_opm

 

Hmmmm nothing like being able to pack up my assets and walk across a boarder.

 

i would hate to get stuck holding the paper

Arius's picture

"Nobody is trading it"

 

these fuckers dont trade like the rest of us 50-50 ... they "trade" only sure things, when they can see in their screens who is trading what and take the opposite ...

 

when it comes to uncertain things ... like what Putin is going to do next ... they dont bet a fucking dime ...

markets ... yeah right