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      11-06-2011, 01:30 PM   #2306
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Quote:
Originally Posted by slamako View Post
See below. I just want to share this information. Your thoughts on this?
ICE apparently has also followed suit....

CME Group has apparently just raised the maintenance margin requirement to
equal the INITIAL margin requirement - on EVERYTHING.

Read more about it here http://www.zerohedge.com/

To quote part of the article:

"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?"

Translation: Forced liquidation of millions of dollars of positions on Monday.
Here's the story from a more credible source:
http://www.bloomberg.com/news/2011-1...unt-shift.html

And a quote:

Quote:
CME Group Inc. (CME) is reducing the initial margin required to back futures trades to ease the bulk transfer of accounts held by MF Global Holdings Inc. customers
Quote:
“This is a short-term accommodation to maintain market integrity and provide temporary relief to customers whose accounts have been disrupted by this event,” the Chicago-based exchange owner said in an e-mailed statement today
The opposite is happening.
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