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CME Lowers Initial ES And Other Key Equity-Related Margins By 12%
It doesn't get much more obvious than this. The S&P at multi year highs, and what does the CME do? Why it lowers initial (as in please come in and open new positions) spec margin for not only the E-Mini, but virtually every other major market "reflexive" product in existence including S&P, Dow Jones, Nasdaq, and subsector futures currently traded, by 12%. As a reminder, the last time that "other" asset class rose to multi-year highs, that would be gold, it hiked margin nearly every single day, with a culmination of two margins hikes in one day on May 4. Naturally, the margin hiker-in-chief is not as worried about stocks attaining the same bubble status since if anything it will merely cement reelection chances. That said, should WTI ever dare to go up above $100 watch as the CME proceeds to decimate anyone who dares to be long WTI futures on margin.
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mmm I'm feeling animal spirits bitchez....not!
"Welcome to my parlor", said the spider to the fly.
Knock yourself out on S&P Bitchezz!!!
Bring out your deeeeeaaaaaad!!!! *BONG*
Bring out your deeeeeaaaaaad!!!! *BONG*
Bring out your deeeeeaaaaaad!!!! *BONG*
Anyone submitting themselves to having COMEX Lucy pull the football away with increased margins again, deserves to be Charlie Browned on their back. Today COMEX asks traders to please stretch their chicken necks onto the COMEX chopping block. Jeff Christian announced gold to fall to $1550 when there would be no QE3. He is the banks puppet. A ventriliquest smiling wooden marionette with their hand moving his mouth, who still sometimes accidently says the wrong thing, ie. LBMA gold is leveraged 100 times. Dont play their COMEX paper games. Get Physical
Jesus you guys really need to put this comspiracy theory bullshit about margins to bed. Margins go up and down with volatility. There is no mystery to it.
The S&P being "at record highs" doesn't mean dick, nor should it. The VIX is at multi-year lows. Thus margin can drop.
You do realizeyou can short ES with the same margin required to buy it, yes?
Give it up already. It's fucking math.
Then perhaps you can explain why margins were raised multiple times (and to an unprecedented degree) for both gold and silver, and ONLY for gold and silver, while prices AND volatility for both were falling last year? And perhaps you can also explain why similar or even higher levels of volatility in other commodities have rarely if ever demanded such a manic degree of margin raising?
When cotton and sugar were radically spiking in price last year, or rice back in 2008, or wheat and corn this summer, I failed to see similar multiple margin hikes, some only one day apart from each other, in ANY of those commodities.
You are a blind fool.
Do you have any records of the number of times margins were hiked on gold and also silver, versus the number of times they were hiked versus cotton, and the amounts of the margin increases? I assume I can call CME and ask, but maybe you have info.
You also need to remember, that this is an experiment they are believing will end dissatrously, but if they can somehow keep the ship afloat, holy shit, they will be miracle workers. B/c to risk a collapse is to risk awakening the muppetry.
So keeping the dollar intact is important, and gold would literally destroy the dollar. It was more or less, a matter of global financial stability that gold be suppressed. Although, if your claims are true then I am astonished.
douchebag,
http://www.cmegroup.com/clearing/risk-management/historical-margins.html
No I won't waste the time to cross reference for you as you're premise proves you are brain dead. If you want to take the time to learn something I encourage you to make use of that link on your own time.
Easily, your wrong. There has been nothing 'unprecedented' about it, nor were gold and silver the ONLY margin hikes (and cuts), and margins don't go up on falling volatility. Whether prices are going up or down is totally irrelevant to setting margins. It is ONLY a function of volatility. The poster obviously doesn't understand this as the rookie observation of stocks being "at their highs" must imply higher margins. It does not, until compounding gains sufficiently increase the value of the underlying contract.
Or to make it easier for you. Margins. increase. for. short. sellers. too. you. dumb. fuck.
100oz of gold at $400 is $40,000
100oz of gold at $1900 is $190,000
think about it, if you can.
They also tend to raise margins near the bottom of the market - "heightened risk" and all. Its a way of getting the wood ducks to buy near the top and squeeze them out again near the bottom.
Nice try dipshit. What will be the excuse when they make it sell orders only?
How long before there is a negative margin on the S&P?
that comes AFTER the pension fund appropriations
MUST SEE: 'Mind If I Violate Your 4th Amendment...'
How many fucking checkpoints in one morning...
Yeah, I-8 runs right next to the Mexican border, duh.
There is a turd in the pool but the lifeguard says keep swimming.
WTI LONG Forever. Fuk CME and Obummer.
lol
Not to worry, the sharks will eat the turd.
"Spalding, nooooo!"
If only they could lower margins on jobs...
I hear circus music.
http://www.youtube.com/watch?v=1D5Sa2Yq-2g
+1 I was thinking along the same lines but had this famous tune in mind. Also especially good when played as background music simultaneously with one of those other slow motion Nanex HFT vids on you tube.
http://www.youtube.com/watch?v=MK6TXMsvgQg
flash crash being planned
they are trying to push it to 15K before the election. This is their last chance. 100 years of progressive planning on the line.
hooray......financial repression to infinity...Obama for Dictator !
They'll be happy with 14000 and they will get it if this volume malaise continues....after November, all hell breaks loose.
It should always be 100% margin. Don't have the money? Fuck ya!
xactly. the credit-growth myth.
Buying buyers (bagholders) on margin.
No matter what you do bend us all over bernake, it wont work!
KING STAWKS RAH RAH!
the Dukes know something, let's get in on it.
Guns n gold! This dude sounds like some of us...
http://www.mail.com/int/video/topvideos/1571630-surprise-discovery-nv-re...
Lesson: don't just hoard.
ooooh. oooooooh, a conspiricy theorist, a hermit, a nutcase. ooooooh. And while we are denigrating his memory, we might as well denigrate his coins and turn their uncirclulated condition into circulated. Fucking idiots.
There are some other stories about this. A couple things -- he kept a ledger and receipts, so they know the basis. The really weird thing is the IRS is claiming taxes are $750K, which does not compute at all. They found a single relative, a first cousin, who gets the balance after taxes.
With just a little planning -- a couple letters, each holding the decoding instructions for the other, left with attourneys -- his stash could have been secure and passed on beneficiaries without so much notoriety. Plan ahead, people!
CHICAGO mercantile exchange
CME COCKSUCKERZ!!
Like the poker player with the biggest bankroll that consistently gos all-in, eventually the hand will be called.
...
HOARD GOLD, SILVER, GUNS, PORK, PORN, IPA BEER, BEANS, RICE, CORN, OIL, WHEAT, COWS, FARMLAND, ZH POSTS, TITS--this shit is going UP!
But only the NK603 roundup-resistant one. They can take your guns but not the corn.
So you mean the one that causes cancer?!?!
heck why stop with the manipulation now.??
So obvious - who the heel do they really think they are kidding? The sad truth is - it will probably work. Stock Market making new ATH - with Real Unemployment at 16%, Negative Earnings for the S&P and 16 Trillion deficit. Obama will look in the camera and say he inherited the worst economic depression in history - and because of his leadership - the stock market has fully recovered and we are on our way to a 1000 year new world. AND PEOPLE WILL BUY IT!! Things are so fucked up right now that the only way things are going to change is through the end of a gun barrel - not an electronic ballot that will probably get manipulated anyway.
Fuck, there are still people in the markets?
It's too bad Corzine didn't run the CME.
Where is Johnny? Not at the convention. Not in public. What could he be hiding from? Where is the Veep telling us they still call on Johnnie?
zerohedge is the greatest. i didnt check cause i just cant stomach yahoo finance and bubblevision but i doubt they are reporting it.
stocks can't go down until bag holders are found
Thank God you did not include the word "silver" in your comment as well, or you would have summoned the ghost of Trav7777!
How low can you go?
Banksters – The Great Con Game
It's a Bubble.
You've got to be suicidal to buy anything on margin right now!
Yea dude. It is crazy. Even shorting the market on margin is tough which is why I have kept a very small position.
So when the price is at multi-year highs we lower margins? That makes so much sense. I would have thought it was the other way around. I don't know why I would have thought that. Maybe we can sweet PR woman from the CME to explain it to us. Anyone have her email?
I just love bubbles
The CME always gives me a strange tingling in the "margin" betwixt me buttocks.
Funny. I always had a strange feeling when I traded the Nymex and CSCE decades ago. Even back then, I felt like I was being front runned guys on the floor. I hated doing any business in NY.
When they have to ship all that printed money railways will go up too.
this is a shitty deal theyre not even sereving free cocktails.
When are you schmucks going to realize that Bennie has a 8 quadrillion dollar margin excess and likes the market because it is undervalued. Try to short into an 8 quadrillion bid. Never underestimate the replacement power of equities within a Barnancke-esque Ponzi-driven buying binge. Don't fight the Fed and don't fight the tape. End of friggin story.
Breaking News: Chicago Mercantile Exchange to change symbol from CME to MPTFKR.
Run Forest, run!
This is the most F'd Fuck thing I have ever heard.
World economies are crumbling yet the US is encouraging people to pile into stocks at a 5 year high.
This is incredible.
Maybe they want to make more commissions, from the flock that is already squeezed! Don't think for a minute it is ALL about 'being long'. They just want traders in the game. Only SKILL wins...fwiw.
last Qtr. o/n margin for the /6E was $4,050 per contract. Now changed to $3,300. If you really want asssraped play with the /E7, the mini-Euro. It was $2,050 (I think) and now $1,650. Oh, if your broker mentions. 'it doesn't have much liquidity", take it to heart. They will get you 6 pips both directions when you really want out, or in. Stay with the Big one. http://www.cmegroup.com/clearing/margins/#e=CME&a=FX&p=EC
why wouldt ya just HIKE crude??
Maybe performance bond requirements were changed because the volatility in the markets has thrown some firms out of compliance with Futures and Options settlements coming tomorrow ?
odummernomics casino
needs some muppets !! come on muppets use margin to join the corzine-madoff-kenyanomics ponzi scheme. we'll show you a 1% gain...followed by a -20% sell-off
Pull my finger!
Edit: You don't pull on superman's cape
You don't spit into the wind
You don't pull the mask off the old lone ranger
And you can't fuck with me and my men
Boom bit competition ain't shit
Fakin the funk like silicon tits HERE COME THE GRAVEDIGGAZ!