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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: pogohere who wrote (82723)	11/5/2011 1:44:10 AM
From: Proud Deplorable	1 Recommendation Read Replies (3) \| Respond to of 217901

This is all GREAT NEWS as people who buy on margin deserve to lose everything. Margin is an evil concept, a capitalist practice which has now come to an end. After the washout of the greedy bastards who use margin is finished gold and silver will rebound strongly in my opinion. Watching the big C Capitalist system come undone is a dream come true for me and others in the 99%

To: pogohere who wrote (82723)	11/5/2011 3:14:08 AM
From: elmatador	Respond to of 217901

MF Global client funds turn up at JPMorgan. Accounts containing $659m belonging to customers of MF Global have turned up at JPMorgan Chase, the failed broker-dealer’s custody bank, according to a person familiar with the matter. The disclosure raised hopes of explaining a shortfall in customer accounts that emerged after the broker-dealer filed for bankruptcy on Monday. The gap, $633m as of Tuesday, sparked investigations by federal authorities. On Friday, Jon Corzine, MF Global chief executive, resigned. JPMorgan disclosed the funds to MF Global in a statement dated Monday, the person said. The statement revealed a total of $2.2bn – including MF Global’s own funds – held at JPMorgan, which also was listed as the largest unsecured creditor to its holding company. JPMorgan said it keeps customer and house funds for MF Global, but declined to quantify them. “There’s no way for JPMorgan to know if this is the ‘missing money’,” a spokeswoman said. The trustee managing the liquidation of MF Global’s brokerage said it would try to identify the location and nature of MF Global accounts held at JPMorgan. The shortfall gave a second black eye to Mr Corzine, 64, after the former Goldman Sachs chief executive’s firm imploded due to concerns over a $6.3bn bet on European sovereign debt. “I feel great sadness for what has transpired at MF Global and the impact it has had on the firm’s clients, employees and many others,” he said in a statement. He joined the broker-dealer less than two years ago after losing a bid for re-election as New Jersey governor. Regulators and bankruptcy lawyers are widening their investigation into MF Global’s collapse. On Friday, the bankruptcy trustee won approval to subpoena records from the company and share them with authorities. “In this case, there have already been serious allegations of potential misconduct,” Martin Glenn, US bankruptcy judge, said. Mr Corzine, who has hired Andrew Levander, a white-collar defence lawyer, said he would help the company respond to regulatory inquiries and issues related to the disposition of firm assets. He would also forgo $12.1m in severance pay, MF Global said. The MF shortfall has rekindled efforts to pass a rule, proposed last year, that would limit the scope of brokers’ investments of customer funds. “I’m calling it the MF rule,” Bart Chilton, a member of the US Commodity Futures Trading Commission, told the Financial Times. “I don’t think we should wait.” Rival futures brokers were, meanwhile, receiving thousands of former MF Global customer accounts. CME Group, the exchange operator overseeing the bulk of the transfers, said late on Friday that it expected to have moved 15,000 customer accounts and about $1.45bn of collateral to other clearing firms. Some collateral will be left behind, however, raising fears that traders will be forced to add margin or unwind positions when futures markets reopen next week. MF Global suffered a string of credit downgrades last week to “junk” after rating agencies decided the broker had taken on too much risk with European sovereign debt. “Corzine was getting back ‘in the game’ – a game he clearly loved. The liquidation of a company was not what he volunteered for,” said Brad Hintz, senior analyst at AllianceBernstein. Copyright The Financial Times Limited 2011. You

To: pogohere who wrote (82723)	11/5/2011 10:14:11 AM
From: elmatador	Respond to of 217901

For me and my little Brazilian brain and not versed in finance means: there are a lot of investors out there holding what they do not own. And they will have to sell what they actually own to cover margins. "followed by forced liquidations of margin accounts across America... and the world". Which is what t I keep saying: When there is a drain of capital out of emerging markets is guys 'selling to cover the holes elsewhere'.

To: pogohere who wrote (82723)	11/5/2011 2:15:11 PM
From: pogohere	Read Replies (1) \| Respond to of 217901

To: Clearing Member Firms From: CME Clearing Date: November 5, 2011 Re: CME Group Clarifies Maintenance Margin Ratios Exchange to Reduce Initial Margin Ratio to 1.00 CME Group today is clarifying its notice to clearing firms regarding margins. In light of the issues customers transferring out of MF Global are facing, while still maintaining appropriate risk management protections for the market, CME Clearing is setting the "initial" margin upcharge at zero. This upcharge is normally applied to customer accounts when they are receiving a margin call. The intent and effect of these changes is to decrease the size of any margin calls resulting from the bulk transfer of MF Global customers to new clearing members, not to increase them. Yesterday, CME Group successfully transferred MF Global customer positions to a new clearing member with part, but not all, of their funds, as approved by the bankruptcy trustee and the court. By reducing the initial margin “ratio” to 1.00, we ensure that margin calls that are issued to these transferred MF Global customers will be limited to bringing their accounts into compliance with the lower, “maintenance” margin levels. Maintenance margins are set to provide appropriate risk management coverage. Initial margins are set to provide an additional buffer against future losses in the account. This is a short term accommodation to maintain market integrity and provide temporary relief to customers whose accounts have been disrupted by this event. We apologize for any confusion our initial advisory may have created. docs.google.com Re: Margin Requirements? u2 - link? Nonstory IMO From another less schizo ZH poster So I just called the CME group at the number listed on their site, said I had questions on the performance bond notice, and was put through to a man named Ed Gogol. He said the effect of this is to temporarily LOWER the initial requirements to meet maintenance. He said this was done with the express purpose of decreasing the number of margin calls, likely because of MF.He also said, "We definitively did not raise margin requirements." investorvillage.com But with margins only due later Friday or next week, forcible liquidation looming on Monday morning, and thousands of accounts still unsettled, dealers were jittery. Great Pacific Wealth Management, an MF Global client whose accounts were transferred, was told it could not offset or liquidate positions for a day, said vice president Sean McGillivray. Some were bracing for a potentially wild ride once electronic trading resumes on Sunday evening, a typically thin trading period when forced orders could roil prices. "If clients have access to their accounts they are going to try to do everything they couldn't do during the week," said one MF Global employee. "It will be a thin session, it could be Niagara Falls through a garden hose." investorvillage.com CME increases margin call; markets will be under pressure November 05, 2011 02:20 PM \| Moneylife Digital Team US options & futures holders will be forced to deposit billions in additional capital to the CME to avoid margin calls. This may pressure all asset classes on Monday There is a liquidity crunch in the options & futures markets for commodities worldwide. CME, the exchange for such transactions in the US, had made the initial margin and maintenance margin equal for every commodity with options and futures. This implies that options and futures holders will be forced to deposit addition capital to the CME in the form of maintenance margin, simply to hold their positions. This will put markets under pressure on Monday. The lack of liquidity and additional margin requirement comes in the aftermath of the bankruptcy of MF Global. The London Metal Exchange has suspended MF Global from trading with immediate effect, following a similar move by the CME Group, which operates the Chicago Mercantile Exchange, Chicago Board of Trade and New YorkMercantile Exchange. MF Global had filed for bankruptcy protection following bad bets on euro-zone debt. The brokerage’s meltdown in less than a week made it the biggest US casualty of Europe's debt crisis, and the seventh-largest bankruptcy by assets in US history. One of the biggest market concerns now is systemic liquidity, which is virtually non-existent. Interbank liquidity in Europe is at an all-time low, and possibly for the US banks. But this is just as true at the commodity exchange level, where it appears the aftermath of the MF Global collapse is just now being felt. CME's margin hike will force market players to cough up billions of dollars in a single day. Since this cannot be easily procured in onebusiness day, we may see margin calls and forced liquidations of margin accounts across America and the world. moneylife.in