Comex, Nymex Hike Margins On Gold, Silver

[JohnQPublic]

Inflationary Guerilla Tactics Resume As Comex, Nymex Hike Margins On Gold, Silver, Cracks, Spreads And Other Products (http://www.zerohedge.com/article/inflationary-guerilla-tactics-resume-comex-nymex-hike-margins-gold-silver-cracks-spreads-and)

Submitted by Tyler Durden on 01/20/2011 20:11 -0500

Copper Crude E-Trade Nat Gas NYMEX Smart Money


Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session? Here is your answer: in tried and true fashion the Comex just hiked margins in gold, and silver by about 6%, and threw in a few other commodities to mask things up. And unlike the last time it did it, when it could at least pretend to justify its actions with the surge in gold price, this time with the PM complex dropping, we wonder what excuse the CME will use this time. Initial and Maintenance margins were just increased in everything from 10 Tr Oz Gold Futs, Comex 100 Gold Futures, Comex Miny Gold and Silver, E-mini Gold and Silver, Comex 5000 silver futures to Silver trade at settle. Also added were Copper, Iron Ore, propane, butane, and other nat gas. Most notably, and confirming that the administration and the money printing authorities are terrified by the surge in crude, the CME also hiked margins in various refined products and coal. The official scramble to "contain" the aftermath of Bernanke's lunacy is accelerating. We wonder when REDI, Prime Brokers and E-trade will comparable collapse purchasing margin for stock trading accounts. Of course, as with all other such superficial market interventions, the impact is shallow and is overrun in a matter of days.

And no...there was absolutely no leak this time. We promise.

[JohnQPublic]

This was not mentioned by Harvey Organ today on his blog. Shouldn't he know this?

[osoab]

I can't find the announcement on their website. Nothing on a google search either.

[JohnQPublic]

I can't find the announcement on their website. Nothing on a google search either.


The announcement is posted on the Zerohedge link and Scribd.

[JohnQPublic]

Here's a link to the actual memo on the COMEX website:

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-23.pdf

[ximmy]

Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session?


I will be taking whatever FRN's I can gather and rush right into the dealer tomorrow...

[JohnQPublic]

This was not mentioned by Harvey Organ today on his blog. Shouldn't he know this?


An anonymous poster posted it on Harvey's comment section at 5:08 (PST?). ZeroHedge got it 3 minutes later. I posetd it iin comments at 5:29. Harvey came on at 6:06 and commented to someone who made a comment after me, but he did not mention the margin hike.

https://www.blogger.com/comment.g?blogID=4795619781557835773&postID=4726693894167186490

[osoab]

Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session?


I will be taking whatever FRN's I can gather and rush right into the dealer tomorrow...


I think we fall further ximmy, op ex is next week.

[JohnQPublic]

Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session?


I will be taking whatever FRN's I can gather and rush right into the dealer tomorrow...


I think we fall further ximmy, op ex is next week.


It is likely a "coincidence" that margins were increased for nest week! :D

[ximmy]

Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session?


I will be taking whatever FRN's I can gather and rush right into the dealer tomorrow...


I think we fall further ximmy, op ex is next week.


It is likely a "coincidence" that margins were increased for nest week! :D


Great!!! I go every Friday... ;D

[JohnQPublic]

BTW, one of the commentors on HO blog reminded us that this happened lasy year when they raised the margins (sept. 2010 I think). Recovery was pretty quick (certainly by Dec.).

[osoab]

BTW, one of the commentors on HO blog reminded us that this happened lasy year when they raised the margins (sept. 2010 I think). Recovery was pretty quick (certainly by Dec.).


happened in November too.

[osoab]

Wonder why the smart money was rushing headlong out of gold and silver over the past few days, and especially today in the AM session?


I will be taking whatever FRN's I can gather and rush right into the dealer tomorrow...


I think we fall further ximmy, op ex is next week.


It is likely a "coincidence" that margins were increased for nest week! :D


Great!!! I go every Friday... ;D


Hope it's cheaper for ya ximmy.

[joe_momma]

Who knew? Seems the margin requirements were just "unexpectedly" increased for PMs .

Wow.

So, like all those short sellers who got out in the last few days were "totally good guessers" right?

http://www.zerohedge.com/article/inflationary-guerilla-tactics-resume-comex-nymex-hike-margins-gold-silver-cracks-spreads-and

[joe_momma]

darn your oily hide JohnQPublic!- you posted the topic before me!


;D

[JohnQPublic]

Who knew? Seems the margin requirements were just "unexpectedly" increased for PMs .

Wow.

So, like all those short sellers who got out in the last few days were "totally good guessers" right?

http://www.zerohedge.com/article/inflationary-guerilla-tactics-resume-comex-nymex-hike-margins-gold-silver-cracks-spreads-and


Went ahead and merged ya!

[Neuro]

The margin that traders pay on their contracts, should be a fixed percentage. These hikes always comes as a co-ordinated smack down ensues... I am pretty sure that the raise in margin requirements is not the cause of the smack down, but an instrument used to enhance it...

[JohnQPublic]

A third commentor asked about the margin hikes. Harvey finally responded:

" Harvey Organ said...

to all: trust me on this:

Bart is a good guy. It is the others that I am concerned about.

I have already sent down my complaint to the 4 commissioners, (the chairman Mr Gensler, Mr Dunn, Mr O'Malia and Ms Sommmers) I excluded Mr Chilton

The margin hikes are desperation as they clearly must cover their shorts but demand for real metal is killing them.

Wait until you see my complaint.
..it is a little scathing to the CFTC..even for me.

all the best
Harvey

January 21, 2011 12:29 AM"

[osoab]

The info is in their advisory section (http://www.cmegroup.com/tools-information/advisorySearch.html#). Not in their press releases. Sneaky Bastards. You can subscribe to auto notification for these.

We had margin changes on:

December 16 (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv10-507.pdf)

November 29 (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv10-480.pdf) which was for short options

November 16 (http://www.zerohedge.com/article/cme-raises-gold-futures-margins-6-hikes-silver-margins-second-time-under-week)

November 9 (http://www.zerohedge.com/article/when-banks-dont-results-cme-just-changes-rules-full-revised-silver-margin-schedule)

October 14 (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv10-430.pdf) Dealt with SPAN MINIMUM performance bond. I have no clue what this means.

February 11 (http://www.zerohedge.com/article/cme-increases-gold-silver-palladium-margins)

Some of these I can't find on the advisory website and I linked to ZeroHedge articles. They have the scribed version of the releases.

[osoab]

Great!!! I go every Friday... ;D


Hope it's cheaper for ya ximmy.





London fix prices.
2011-01-28
Gold Silver
AM PM -
1316.00 1319.00 26.6800

---------------------------------------------
2011-01-21
Gold Silver
AM PM -
1344.00 1343.50 27.1400



http://www.kitco.com/hist_charts/silver/24_hours/2011/ag01212011.gif

http://www.kitco.com/hist_charts/silver/24_hours/2011/ag01282011.gif

Ended up cheaper in London not in New York. >:(

[JohnQPublic]

...Ended up cheaper in London not in New York. >:(


Geographic arbitrage!

[osoab]

CME Raises Margins for Silver, Copper, Platinum After Today (http://www.bloomberg.com/news/2011-02-04/cme-raises-margins-for-silver-copper-platinum-after-today.html)


By Claudia Carpenter - Feb 4, 2011 12:27 AM CT
CME Group Inc. raised margins for silver, copper and platinum, effective after the close of business today, the exchange said in a statement on its website.

Nothing on the advisories page at the CME site (http://www.cmegroup.com/tools-information/advisorySearch.html#) yet.


Edit.

Here is the link for the pdf.
http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-44.pdf

This was posted yesterday. I was only looking for Feb 4 notices earlier.

[JohnQPublic]

CME Raises Margins for Silver, Copper, Platinum After Today (http://www.bloomberg.com/news/2011-02-04/cme-raises-margins-for-silver-copper-platinum-after-today.html)


By Claudia Carpenter - Feb 4, 2011 12:27 AM CT
CME Group Inc. raised margins for silver, copper and platinum, effective after the close of business today, the exchange said in a statement on its website.

Nothing on the advisories page at the CME site (http://www.cmegroup.com/tools-information/advisorySearch.html#) yet.


They are desperate to help JPMorgan cover their shorts!

[osoab]

CME Raises Margins for Silver, Copper, Platinum After Today (http://www.bloomberg.com/news/2011-02-04/cme-raises-margins-for-silver-copper-platinum-after-today.html)


By Claudia Carpenter - Feb 4, 2011 12:27 AM CT
CME Group Inc. raised margins for silver, copper and platinum, effective after the close of business today, the exchange said in a statement on its website.

Nothing on the advisories page at the CME site (http://www.cmegroup.com/tools-information/advisorySearch.html#) yet.


They are desperate to help JPMorgan cover their shorts!


Here is the pdf (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-44.pdf). I don't remember these contracts being upgraded before. These seem new. Quite honestly, I didn't know that many different contracts existed. Silver by far had the most contracts adjusted. 36 vs 18 for gold.

JQP do you know what the Tier 1 thru Tier 4 mean?

[DMac]

Bix sent out an email alert on this one:



ALERT: JP Morgan Covers Another 15M Ounces of Silver Shorts!

Well the new CFTC Bank Participation Report is out for the month of January 2011...you remember January don't you? The price of silver was deliberately slammed by the banking cabal and all the "Professional Analysts" were yelling that silver was a huge bubble about to pop...right?

Well, if this is true then why did....

THE LARGEST COMEX SHORT AND CONTROLLER OF THE SLV SILVER INVENTORIES BUY BACK 15M OUNCES OF THEIR SHORT POSITION IN JANUARY?!!!

The data is all here:

http://www.cftc.gov/MarketReports/BankParticipationReports/index.htm

This is further evidence "THAT BIG BANK" is purposefully whipsawing the silver markets in order to try and close out their COMEX short positions in silver. Obviously they got inside information back in December 2010 that the CFTC will be implementing position limits by March 2011 so the mad rush is on.

Just look at what they've been able to cover in the last 3 months. This data comes directly from the CFTC Bank Participation Report under US Banks:


11/2/10 = 30,760

12/7/10 = 26,332

1/4/11 = 22,658

2/1/1 = 19,706

That's a total of 11,054 short contracts or over 55M oz of SILVER bought in 3 months!

To put this all in perspective...that's 1/2 of what the Hunt Brothers bought in over 5 years of trying to "corner" the silver market back in the 1970's!

The thing is...the clock is ticking fast. They only only have until March 28th to cover another 12,000+ or over TWICE AS MANY CONTRACTS IN 1/2 THE AMOUNT OF TIME in order to come in below the proposed position limits rule.

Expect them to try to "pick up the pace" in covering which means massive silver volatility and the possible SILVER MOONSHOT if they can't seem to get there... and they panic!

Read this article to see what might happen...

$6,000 Silver & ONE BANK!
http://www.roadtoroota.com/public/94.cfm

BUCKLE UP...WE ARE IN FOR THE RIDE OF OUR LIVES!

Bix Weir
www.RoadtoRoota.com

[ximmy]

"BUCKLE UP...WE ARE IN FOR THE RIDE OF OUR LIVES!"

Yee-hah...

[osoab]

The info is in their advisory section (http://www.cmegroup.com/tools-information/advisorySearch.html#). Not in their press releases. Sneaky Bastards. You can subscribe to auto notification for these.

We had margin changes on:

December 16 (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv10-507.pdf)

November 29 (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv10-480.pdf) which was for short options

November 16 (http://www.zerohedge.com/article/cme-raises-gold-futures-margins-6-hikes-silver-margins-second-time-under-week)

November 9 (http://www.zerohedge.com/article/when-banks-dont-results-cme-just-changes-rules-full-revised-silver-margin-schedule)

October 14 (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv10-430.pdf) Dealt with SPAN MINIMUM performance bond. I have no clue what this means.

February 11 (http://www.zerohedge.com/article/cme-increases-gold-silver-palladium-margins)

Some of these I can't find on the advisory website and I linked to ZeroHedge articles. They have the scribed version of the releases.


New advisory out to hike up Ag margins (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-103.pdf). March 23

The last one was on February 3. See above for the link.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/bernanke/CME%20Hike%203.24.jpg

[beefsteak]

Osoab,

there on the last page of your posted images, down at the bottom, is that a GLOWING recommendation wrt. URANIUM? Only a 60% initial position hike...
Hmmmm...

wonder who is looking for for extra U-238?

[osoab]

Osoab,

there on the last page of your posted images, down at the bottom, is that a GLOWING recommendation wrt. URANIUM? Only a 60% initial position hike...
Hmmmm...

wonder who is looking for for extra U-238?


I was wondering who was keeping others from controlling more of the market. Shaking out weak hands.

Uranium was in a slide prior to the EQ in Japan. Then it was an immediate dump when the reactor issues made the front page. They have recovered some. It's not like we are going to dump Uranium overnight. There is going to be a need for it for some time. The action is crazy.

[osoab]

The long awaited margin hike occurred. 9% seems like chump change now.

CME Hikes Silver Initial And Maintenance Margins By 9% (http://www.zerohedge.com/article/cme-hikes-silver-initial-and-maintenance-margins-9)

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-149.pdf

[Neuro]

The long awaited margin hike occurred. 9% seems like chump change now.

CME Hikes Silver Initial And Maintenance Margins By 9% (http://www.zerohedge.com/article/cme-hikes-silver-initial-and-maintenance-margins-9)

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-149.pdf


As usual coordinated with the smackdown! The big smackdown will come on Wednesday though, when the Fed says they are not going to monetize anymore debt. They are of course lying, they'll engage with a few hundred billion dollars of secret currency swaps with other central banks, who'll buy treasuries, while the Fed buys their countries bonds, like they did between QE1 and QE2, but it will change the psychology of the markets. Sell now and buy back cheaper later, or stay in the cold shower!

[JJ.G0ldD0t]

Bottom's dropping out now... 44.95 :-(


And its moving too fast to schedule a buy at the shop.

Damn the manipulators.

[beefsteak]

3rd "business day" prior to the end of every calendar months is the EXPIRATION OF O.T.C. options in London, the largest precious metals bourse in the world for all practical purposes. Circling such dates on the calendar makes this phenom less likely to be a surprise. Then it's games until COMEX closes in NY, and more games as the naked long strike option players have about another 1.5 hours to do their decision thing whether to close or take delivery.

Always interesting 3rd day before end of month in PMs...usually interesting to "downside" pressure, tho'.

beefsteak

[beefsteak]

ZERO's Tyler Durden says "it" so much better than I did wrt option strategies on OTC day, even tho' he doesn't call it OTC day...that IS what he's describing.

He's using Au as his example.

http://www.zerohedge.com/article/war-over-1520-gold-pin-tomorrow-part-3-market-manipulation-recipe-three-parts

[osoab]

2nd hike for silver in a week. 10% more.

Second Silver Margin Hike In One Week... Is Now Priced In (http://www.zerohedge.com/article/second-silver-margin-hike-one-week-now-priced)

http://www.scribd.com/doc/54171632/cme-4-28

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-153.pdf

So is this why silver took a dump after 49.50 area?

Edit. Ag was the only PM to get bumped up today. Milk futures decreased though. :oo-->

[JohnQPublic]

Be sure to read this thread:

http://gold-silver.us/forum/gold-silver-precious-metals/comex-explains-large-adjustment-in-silver-gold-registered-inventories/

If these guys are right, then tomorrow should be a relaxed day. Brian O'Flannigan comments on Harvey's blog regularly, and represents a different viewpoint than Harvey, Adrian Douglas, Ted Butler, etc.

[yankee1steve]

Everyone should absolutely read this and post it on SLW, GPL & EXK board on yahoo. I cannot post because it looks like everytime I post it they removed it. Can you guys help to warn everyone. here is the news on the COMEX manipulation and deliberate supprssion of silver mining stocks.

http://tfmetalsreport.blogspot.com/2011_04_01_archive.html

I even warn NIA and please pass this news before Monday market open. HOLD your position.

[yankee1steve]

Please read it and help me post it in EXK and SLW forum. I wasn't able to post using yankee1steve. Looks like yahoo is preventing me from posting this important news to all.
http://tfmetalsreport.blogspot.com/2011_04_01_archive.html

Listen to this Australian news on silver manipulation:

http://www.switzer.com.au/video/legrand-april28/

Hold your position guys. Please let me know whether you can post it. I already inform NIA and gata.org. If let the news out to as manay people as possible on the mining stock blog. Thanks

GLTA

SS

[osoab]

Lets see. MF Financial? raised margin limits on Friday. T.O.S. doubled their silver margins on Monday morning double of COMEX. Now Comex is has bumped them again.

And Scene: CME Hikes Silver Margin For Third Time In 7 Days, Raises Initial, Maintenance Margins By 12% (http://www.zerohedge.com/article/and-scene-cme-hikes-silver-margin-third-time-7-days-raises-initial-maintenance-margins-12)

Actual CME pdf. (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-156.pdf)

Edit.

Silver was the only commodity listed in this advisory notice.

[MAGNES]

Actual CME pdf. (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-156.pdf)


That one is a keeper for the history books, the record New Initial was something like 14 K + ,
that was a while ago in 2009 I believe where SI was at close to highs, now they are at 16 K,
and they did this after SI got wacked good from 50, at 42 roughly. So they are going to
flush out more people now, or whoever is left. The leverage is still high considering the price
of SI. Much higher than before. So Wed 4 th is day 2, people are getting margin calls, lol .

[osoab]

CME Hikes Silver Margins By 17%: 4th Hike In 8 Trading Days (http://www.zerohedge.com/article/cme-hikes-silver-margins-17-4th-hike-8-trading-days)


Actual CME pdf
(http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-159.pdf)

Once again silver was the only commodity that had any change in margin requirements.

[osoab]

Gold @ 1800 and still going with this last margin increase. None in silver this go around.

Performance Bond Requirements: Metals, FX, Interest Rates, and Equity Outrights- Effective Thursday, August 11, 2011

link for pdf. http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-279.pdf

[JohnQPublic]

Gold @ 1800 and still going with this last margin increase. None in silver this go around.

Performance Bond Requirements: Metals, FX, Interest Rates, and Equity Outrights- Effective Thursday, August 11, 2011

link for pdf. http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-279.pdf

Only the mini gold is affected.

See this: http://gold-silver.us/forum/showthre...l=1#post444806 (http://gold-silver.us/forum/showthread.php?52787-gold-up-50-silver-up-0.50-WTF&p=444806&viewfull=1#post444806)

[osoab]

Only the mini gold is affected.

See this: http://gold-silver.us/forum/showthre...l=1#post444806 (http://gold-silver.us/forum/showthread.php?52787-gold-up-50-silver-up-0.50-WTF&p=444806&viewfull=1#post444806)


That would be incorrect. The 10oz, 100oz, E-MINI, and MINY contracts were all affected.

Check out the pdf of the press release. If I got my numbers correct, about a 19% hike in both the 10oz and 100oz contracts.

[osoab]

And There's Your Perfectly Leaked Explanation: CME Hikes Gold Margins, Again, This Time By 27% (http://www.zerohedge.com/news/and-theres-your-perfectly-leaked-explanation-cme-hikes-gold-margins-again-time-27)



Only for gold. Nothing else affected.
Another hike.

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-300.pdf

[beefsteak]

No worries! It's contractual language. If under capitalized, it's a problem. For physical holders, who cares.

Just the difference in use of leverage. I'm willing to stick my neck out and say this "correction is over" except for the shouting by after Labor Day.

This "correction hasn't even dented the gold market rally. Dented egos maybe, but not the gold market. Nothing positive has occurred...not even in durable goods. The numbers to watch are train car loadings, not durable goods.

Loadings is the canary in the mine the pros watch, not durable goods which CAN be and ARE fudged to fit agendae.


beefsteak

[osoab]

No worries! It's contractual language. If under capitalized, it's a problem. For physical holders, who cares.

Just the difference in use of leverage. I'm willing to stick my neck out and say this "correction is over" except for the shouting by after Labor Day.

This "correction hasn't even dented the gold market rally. Dented egos maybe, but not the gold market. Nothing positive has occurred...not even in durable goods. The numbers to watch are train car loadings, not durable goods.

Loadings is the canary in the mine the pros watch, not durable goods which CAN be and ARE fudged to fit agendae.


beefsteak

I would like to look at the options action. Turd had a good post on this today.
This is the part that really caught my eye.

Turd Tips His Hat (updated for margin hike) (http://www.tfmetalsreport.com/blog/2175/turd-tips-his-hat)




Another warning of the impending disaster was provided by a different Turdite:
re: Gold smackdown coming... (http://www.tfmetalsreport.com/comment/37037#comment-37037)

Submitted by silver foil hat (http://www.tfmetalsreport.com/users/silver-foil-hat) on August 23, 2011 - 5:43am.
look at the options activity on GLD...
$4,040,919 puts at 175 bought yesterday
$1,019,046 puts at 170 bought yesterday
$1,221,472 puts at 165 bought yesterday
Even a trend down to any of these numbers, for those unfamiliar, will likely make these options double, triple, or more. GLD doesn't have to get to 165 to make the trade at 165 worth the purchase.
Can the EE make money shorting "Gold" on the crimex? Don't forget, in bringing down Gold, Silver will follow, along with its options, as well as miners (and, of course, their options). So once you knock over the first domino, the rest will fall.
They may take a loss on shorting Gold this time, as the physical demand will be overwhelming on the way down AND back up (they won't cover all their Gold contracts at a gain... it will likely be a net loss) BUT they will more than make up any possible losses with covering the miner stocks sold short while they are down, closing the put positions, etc.
There is still a gap in the 1500 - 1600 range, isn't there? (Seems like last week... but LOOOOOONNNNNGGGGG ago price wise). I don't know if that gap will be filled.... (It may be a 'flash crash' that only WOPR can fill orders for the EE in that range.. taking out trader stops only).
Here's the relevant data (http://finance.yahoo.com/q/op?s=GLD&m=2011-09)

[osoab]

They snuck one in yesterday.

Margin hike in only one gold contract. Effective Monday.

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-317.pdf

Never heard of this gold contract before. About a 30% increase.

CLEARED OTC LONDON GOLD FWD (GB)


Side not Uranium and Hot-Rolled Steel Futures decreased.

[Shami-Amourae]

How long do you guys think they can get away with this?

[gunDriller]

How long do you guys think they can get away with this?

until the margin requirement is 100%, or one of the exchanges defaults.

they get more effect from the margin increases if they do it an increment at a time - each time the market manipulators can use the occasion to knock the price down 5% or 30%.

[osoab]

Bazooka time at the CME.

Maintenance Margins were increased to match initial margins requirements.

26% across the board on all cme futures contracts. Not just Au and Ag.


Advisory Notice
http://www.cmegroup.com/tools-inform...hadv11-396.pdf (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv11-396.pdf)

Here's the Zerohedge story

CME Goes To Margin DefCon 1: Makes Maintenance Margin Equal To Initial For... Everything!? (http://www.zerohedge.com/news/cme-goes-margin-defcon-1-makes-maintenance-margin-equal-initial-everything)


The most important news announcement of the day was not anything to came out of Cannes (as nothing did), nor from Greece (the merry go round farce there continues unabated). No, it was a brief paragraph distributed by the CME long after everyone had gone home, and was already on their 3rd drink. It is critical, because not only is this announcement a direct consequence of what happened with MF Global several days ago, but because also it confirms one of our biggest concerns: systemic liquidity is non-existanet. We confirmed interbank liquidity in Europe was at an all time low earlier (http://www.zerohedge.com/news/behind-scenes-european-panic-interbank-liquidity-worst-level-ever)today, and can only assume the same is true for US banks. But what is very disturbing is that this is just as true at the exchange level, where it appears the aftermath of the MF collapse is just now being felt. What exactly was the announcement. Unless we are completely reading it incorrectly, it is nothing short of a margin call for tens if not hundreds of billions worth of product. Because as of close of business on November 4, today, the CME just made the maintenance margin, traditionally about 26% lower than the initial margin for specs, equal. For everything. Which means that by close of business Monday, millions of options and futures holders will be forced to deposit billions in additional capital to the CME just so they are not found to be margin deficient, and thus receive a margin call. Naturally, since it is very unlikely that this incremental amount of liquidity can be easily procured in one business day, we anticipate the issuance of hundreds of thousands of margin calls Monday, followed by forced liquidations of margin accounts across America... and the world. Just like when Lehman blew up, it took 5 days for Money Markets to break. Is this unprecedented elimination in the distinction between initial and maintenance margin the post-MF equivalent of the first domino to fall this time around?

[osoab]

I haven't followed the margins for a while, but this is odd, especially with the metals on the rise.

CME Cuts Gold, Silver, Platinum And Copper Margins (http://www.zerohedge.com/news/cme-cuts-gold-silver-platinum-and-copper-margins)



It has been so long since the CME cut gold and silver margins that frankly we are a little bit stunned... In an extended announcement (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv12-059.pdf), which saw outright margins for virtually every commodity get cut, the CME just lowered Initial and Maintenance margins of gold (by 12%) and silver (13%), to $7500 maintenance for GC and $16000 maintenance for SI. Did the paper bull trap season just open? And how long before these are re-hiked by 15%, 20% or more? For now, however, this is certainly near-term bullish.

[Neuro]

I haven't followed the margins for a while, but this is odd, especially with the metals on the rise.

CME Cuts Gold, Silver, Platinum And Copper Margins (http://www.zerohedge.com/news/cme-cuts-gold-silver-platinum-and-copper-margins)

I haven't seen any margin decreases before. And I have been following this for the last 5 years, almost... I may have missed one though... Does it mean TPTB are ready to scrap the fiat monetary system? Or is it a paper bull trap as mentioned in the quote? Or do they want a bunch of bag holders for PM paper default?

[osoab]

I haven't seen any margin decreases before. And I have been following this for the last 5 years, almost... I may have missed one though... Does it mean TPTB are ready to scrap the fiat monetary system? Or is it a paper bull trap as mentioned in the quote? Or do they want a bunch of bag holders for PM paper default?

I am going with your last thought as the reasoning, but more broadly. I think that MF Global fiasco has lost them some business. (I have no way to verify). They need to bring in more loose money to make their books look better.

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv12-059.pdf

They decreased almost everything listed in the above pdf. At 25 pages, I think this is the largest margin requirement release I have seen in the year I have been reading them.

[gunDriller]

i think it might be as simple as some of their wealthier customers saying, "hey, you're cramping our style ! you're making it hard to make money. can you loosen up those margin requirements so we can invest more using OPM (other people's money) ?"


given how manipulated some of the CME markets are, i think this is a piece of that larger puzzle. but it often takes weeks or months to understand what's going on.

it could be as simple as doing a personal favor for a preferred customer. Crony capitalism, Jew-style.

[ximmy]

zero credibility here... paper suckers will be gathered and fleeced again when margins are re-raised... ::)

[beefsteak]

Neuro,

Margins go up and down like women's hemlines. I've seen plenty go up and down in 40+ years. Usually only the gamblers whose bull is gored ever make any noise about it.


beefsteak

[osoab]

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)




While it is unknown if this is merely a bull trap to get yet another bubble going, then to slaughter everyone with the same relentless barrage of margin hikes as we saw in the spring of 2011 (http://www.zerohedge.com/article/cme-margin-hike-4th-and-5th-charting-parabolic-rise-cme-silver-margin-hikes), or simply volumes in commodities have gotten so low that even the CME is willing to allow a little price appreciation in exchange for participation is unknown, but as of April 16 silver initial and maintenance margins will be 12.5% lower, while copper margins are declining by 20%.





For the full list of margin changes among electricity, agri, coal, crude, freight, metals, nat gas, and refineds, see here (http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv12-162.pdf).
Looks like 12%+ decrease.

MFGlobal must be dragging COMEX down. They need more suckers.