Soaring Financial Vol Leads CME To Announce A 33% Margin...Cut

Tyler Durden's picture

Because while soaring volatility in gold and copper, not to mention silver, results in one after another margin hike to "cool off the speculators", when it comes to financial stocks, especially in the "tail wag the dog" variety where the synthetic drives the stock price, a surge in vol means a cut in margins, or 33% to be precise. As of minutes ago, the biggest futures exchange just cut XAF margins by a whopping 33%, exploding vol be damned, or actually, because of it. The CME would be even more delighted if clients were to pledge their gold as collateral, especially following yesterday's expansion of gold's marginability from $200 to $500 million. So just in case anyone missed the message from today, when fins plunged then soared on a rumor, the CME would be delighted if you could repeat all of that but this time with 23% more margin. Expect more margins cuts, this time in ES offset by margins hike in all other instruments, especially of the public enemy #1 variety such as precious metals and crude.

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Motley Fool's picture

All your gold are belong to us.

gmrpeabody's picture

I'm hurting, but not selling.

Jack Napier's picture

Bond margins down, metal margins up, rinse, repeat. Enjoy the low prices and keep stacking. QE3 is just around the corner, as soon as they scare everyone sufficiently.

MillionDollarBonus_'s picture

This teaches ungrateful shorts for betting against AMERICA. I and many others have been long financials and this ensures we don’t have to worry about pesky margin calls. The bears like to gloat whenever they are on the winning side, but it is always the patient, principled investors who have the last laugh.

pauhana's picture

I sure hope you're kidding.  In fact, that's the only hope I have left.

tmosley's picture

That is stupid.  Shorts create a bid when they cover, making no-bid situations less likely, and thus tempering rapid declines.

Not that you care about that, as you are simply trolling.

MillionDollarBonus_'s picture

Oh yeah? Then how do you explain the consensus on the short selling ban by top European politicians? Top economic advisors in France, Belgium, Spain and Italy all agree that shorting banking stocks is harmful, unpatriotic and despicable.

Chump's picture

C'mon, he let it slip on this one.  Everyone's laughing because he's obvious when he usually has "nerdy libertarian anarchists" mad enough to write paragraphs.  That's when he's at his best.

SpeakerFTD's picture

Absolutely.   MDB makes every day just a bit funnier.


And what's with the negative votes?  C'mon, laugh, people.  

tickhound's picture

That boy good... He good.  The dings prove it.

Al Huxley's picture

Fucking hilarious - you're posts always crack me up - very deadpan. Well done.

Long-John-Silver's picture

His green dollar avatar must represent the constant sarcasm he emits. No one with any sanity could be so insane.

Sambo's picture

Shorting bank stocks will bring the ponzi scheme conjured up by banksters to push wealth up the pyramid, to a quick & well deserved end and with it a possibility of building a system that will bestow health, happiness, freedom & liberty on everyone on this planet.

Hulk's picture

LOL, I read despicable with my yosemite sam voice in head...

Kina's picture

HammyWanger!!!! Where have you been. This has to be satire, nobody can possibly be that stupid.

X.inf.capt's picture

+1 for satire

brilliant, alittle dry, but good stuff....

Au_Ag_CuPbCu's picture

Nevermind, you can't be serious LOL

ReadySteadyGo's picture

Dude, you didn't catch the strong scent of sarc?  Seriously?

tmosley's picture

I am well aware that he is a faux troll.  But I engage lies no matter the source, especially if they are teachable.

tickhound's picture

*deleted* due to bad taste.

Proper self-governance... bitchez.

hambone's picture

Well said MDB - your guidance, insight, and leadership and the only hope for turning around these un-American financial terrorists on ZH.  Keep up God's work there MDB!!!

Inibo E. Exibo's picture

I must admit MDB does make ignorance look blissful.

X.inf.capt's picture

i just think he's hilarious....


DeadFred's picture

He gets paid for every reply to one of his troll posts. So keep the replys coming, each one is one more dip into BofA's reserves.

X.inf.capt's picture

thanks, fred, i didnot know that...

does he get paid for sarcastic replies, too...?

caerus's picture

added to shorts...suck it cme

unununium's picture

Now that's the spirit!


Piranhanoia's picture

Poodle bites (come on frenchy) Poodle chews it  (snap it)

Don't start using our band's name without permission either bogus.  The Ungrateful Shorts will sue your ass. Chafe them too. Irritate your roids. The patented drip mechanism will tell all your intimate friends you have the clap too.  Tie the string right and they will give you blue balls, to tight, no balls.  They are American union made and give you the choice of what sex you want to be. And no, we're not going to give you a pair, you have to sign the disclaimer about nut lopping and the non soothing irritation guaranteed by both our shorts and your drooling.

TheFourthStooge-ing's picture

...not a speck of cereal (nothing but the best for my dog)


Peter_Griffin's picture

How have the last 10 years worked out for you MDB?  Might as well have put it in a no yield checking account.

Bunga Bunga's picture

You ignore that capitalism is based on short selling and naked short selling. Without there would not even be Dollars.

Jendrzejczyk's picture


You are fantastic. My new favorite.

No More Bubbles's picture

It won't be so easy to laugh with a rope around your neck!

Au_Ag_CuPbCu's picture

Agreed, celebrate the sweet deal you are being given.  Just curious, could these asshole's intentions be more obvious?  This is surreal, you couldn't put this shit in a movie it's so

I don't know why I am surprised, but I am.  A little.

jomama's picture

i'm still buying... though i wish i hadn't bought a bunch a month ago... d'oh!

vast-dom's picture




JLee2027's picture

The curtain has been pulled back, exposing the hideous financial manipulations for what they are. 

redpill's picture

Yep, these prick faces couldn't be any more transparent.



LongBalls's picture

You can still see for about 15 seconds after your head has been chopped off. I know you read these posts you croked C*CK Suckers. Prepare to be hung with your own intestines.


Panafrican Funktron Robot's picture

The action in the RUT is pretty fuckin' bonkers too.  

hambone's picture

You mean the 7% rally on the RUT in final 45 minutes (601-->649)???  nothing abnormal here...happens all the time.  Move along.

MORE LEVERAGE and we can see 10%, 15%, or 30% daily rallies instead (given the news of a real planned rumor...or is it rumored plan?...not sure which to rally on now)...coming soon to a "market" near you.

LeonardoFibonacci's picture

I am wounded but not slain, i will lay me down to bleed a while and rise to fight again mutherfuckers! Don't touch my fucking gold

hambone's picture

I'm sick to my stomach that this is how democracy dies, how capitalism is tamed, how fraud is made unfraudelent, how theft is made legal, how America and a naive kid who grew up loving her fade to dark.

Those who tell the truth are marginalized and either branded insane, unpatriotic, or simply don't have phd's...I guess this means we have much further to go before American citizens are ready for a real change and the light of a paradigm shifting movement.

Chump's picture

We don't have far to go to at all.  Real change is going to be visited upon us, ready or not.

hambone's picture


I believe you and I are ready...but we are out on the lunatic fringe.  Soccer moms and dads (my job on the weekend) haven't a clue what Ron Paul, you, or I are talking about and honestly they'd prefer we stay away...we scare them as we suggest their world is a Matrix like illusion whose time is (nearly) up. 

Then again, ZH'ers are ready for the change 'cause we've been stacking, paid off all debt, stock piled all neccessary food, security, etc.  For average folks they have none of this and all wealth is in paper...gotta scare the shit out of people who've worked hard but will realize they are standing naked heading into a blizzard.

Chump's picture

Exactly.  That's the struggle I'm working with on some close family members.  They admit we are hitting the wall, and admit that an implosion in government bennies is the ultimate result.  But they just can't/won't make that next logical step: what happens when a mass of people dependent on government checks finds themselves facing literal starvation?  "What would you do if you and your children were starving," I ask.  I almost feel bad for them as they perform mental gymnastics to keep from facing the answer to that question.

Well, I know what I would do, hence my frenzied preparations.  There is a very thin veneer of civilization held in place by working electricity and entertaining distractions.  We are about to see the true nature of our friends and family, and I'm guessing that will be the most frightening aspect of this shitstorm.  Best of luck to you and yours, and my ultimate hope is that I happen across some ZHers in the rolling future.  We need a secret handshake or passphrase or something.