I'm betting that this Lehman Event went pretty much unnoticed and unremarked upon.
No surprise that nothing came out of Cannes Friday, nor from Greece. Those farces continue unabated.
- BUT the CME went "nuclear" (after everyone had gone home and was on their third martini) effective COB on Friday Nov 4th, making the Maintenance Margin (traditionally 26% lower than the Initial Margin for Spec's) equal for EVERYTHING. See attached.
So?
By COB on Monday Nov 7th, millions of options and futures holders will be forced to deposit hundreds of billions with CME to avoid margin calls.
- This is already nothing short of a margin call since it is unlikely that this amount of liquidity can actually be raised in one business day, and forced liquidations of margin accounts in the US and the World can be expected. Systematic interbank liquidity is currently non-existant for Banks in EUrope and the US.
Monday will be an extremely unhappy day for many people. Heads up!
Sunday, 6 November 2011
Not Cannes, nor Greece, but CME goes "nuclear".............from Rico
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Read Jim Sinclair's JSMINESET.
The CME has sent out another missive that clarifies the first one - that was poorly written.
Now they are saying the margin requirement has gone down - not up - to where they match up at the lower figure.
But they may send out still another missive reversing this latest one. We'll see...
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