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Spot The Odd Vol Out
Despite the well-managed collapse of Equity, FX, and Rates volatility in February, the Oil complex is exhibiting Lehman-Depression-like levels of implied vol still as central planners seem unable (or unwilling) to manipulate the energy complex (rock of inflation and hard place of 'consumer tax cut'?). As WSJ reports, this volatility is roiling market makers, luring fast-money traders (and algos) and discouraging long-term investors from hedging/positioning. As one asset manager noted, "we like volatile two-way markets... but this is too high for us."
Perhaps, just perhaps, given the potential difficulty/disagreement of central banks agreeing on how best to manipulate oil prices (and thus lower vol), it is the only (along with The Baltic Dry Index) indicator of the imbalance between excess mal-investment-driven supply and Greenspan's "Depression-like global demand."
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Oil vey! Manipulation? Unpossible!
yeah, its kinda bizarre anymore ....
nobody ever sells stocks anymore, what they do instead is to hedge it with options .... consequently, stocks don't go down the way they ought to ....
re-post casue i believe it to be that important...
power has shifted east fo sho'... the reset for the prices of the only 2 forms of real money cometh...
Feb 27 (Reuters) - China plans to launch a yuan-denominated gold fix this year to be set through trading on an exchange, sources familiar with the matter said, as the world's second-biggest bullion consumer seeks to gain more say over the pricing of the precious metal.The Chinese benchmark would be derived from a new 1 kg contract to be launched on the state-run Shanghai Gold Exchange, a senior source directly involved in the process told Reuters.
China, also the top producer of gold, feels its market weight should entitle it to be a price-setter for bullion and it is asserting itself at a time when the established benchmark, the century-old London fix, is under scrutiny because of alleged price-manipulation. If the Chinese fix takes off, it could add to the pressure on the London benchmark, which is used worldwide by producers, refiners and central banks to price holdings and contracts, although the two could exist side-by-side.
"We need a renminbi benchmark for Chinese producers and foreign suppliers to the market," said the source, using an alternative name for the yuan. "This renminbi gold benchmark can be complementary to the U.S. dollar gold-fixing in London."
The contract for the Chinese fix would be traded for a few minutes each day to make the process transparent - addressing one of the big complaints about the London fix - and the exchange would settle all trades, the source said. One barrier to wider international acceptance is that the yuan is not fully convertible. A second source with a global bullion bank said trading and settlement could be done in offshore yuan to allow foreign banks and other suppliers to participate, although only domestic players are expected to participate initially. China has already made some efforts to liberalise the yuan and encourage foreign participation in its domestic markets, especially in bullion.
The Shanghai Gold Exchange, which has been at the forefront of China's pricing efforts, opened an international bourse in September 2014 in the city's pilot free-trade zone, allowing foreigners to trade yuan-denominated contracts for the first time.
It has also opened up silver contracts for foreign players and launched gold options on a trial basis.
TRANSPARENCY PUSH
China's efforts to gain bigger sway on pricing gained momentum last year, when regulatory scrutiny over the London gold fix increased amid allegations of manipulation of the benchmark, which is set through a teleconference between a handful of banks.
Nein
Terms of tyrade= interest rates.
"We Like two way volatile markets--but this is TOO HIGH for us"...
dont bogart that joint my friend pass it over to me, smoke another one, just like the other one.
bunch of pussahs....
God save the Queen
What ever happened to "MVULUSE:IND" Tyler?
Maybe skull & bones Kerry will make an other trip to the middle east and demand them to cut production instead of upping it like he did ask previously. The Arabs will ask, where's our gold and then Kerry will say, OK we first destroy our shale oil industry and buy up your oil later, deal?
Nein
axioms
New Anonymous op as White House still ignores murder of American reporter Serena Shim in Turkey
Repost of a Forbes article kindly provided by another ZH commenter. IMHO it gives a nice underpinning to the US policy effects on the US exploration and helps frame up expectations for future volatility / trends :-)
http://www.forbes.com/sites/thomaslandstreet/2015/02/25/why-oil-will-fal...