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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (22070)	1/24/2005 5:09:19 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

I did not want to answer this incorrectly so I just spoke with my broker at alaron. When it comes to Eurodollars and Treasuries, the commercials are banks and other financial institutions that are hedging some sort of market risk. They have to fill out some forms to announce themselves as commercial hedgers. I do not think one should assume by any means that 25 contracts makes one a commercial. In fact he told me that market makers (who might be doing thousands of contracts) are not commercials but big specs. I have not thought about the implications of that yet. Mish

To: ild who wrote (22070)	1/28/2005 8:53:33 PM
From: FiveFour	Read Replies (1) \| Respond to of 116555

the reportable position and classification as "commercial" depends on the market. my earlier post was in reference to the VIX market which has a reportable position of 25 contracts. another example, in beans and grain, the commercials would be the Cargills, Bunges, and ADMs of the world. VIX has a low reportable position at 25 contracts. Any spec trader position over 25 contracts is listed on the left side while traders with smaller positions are listed on the right side of the report. Orim