posted on Nov, 5 2011 @ 03:47 AM
I'm going to play devil's advocate on this one, though cautiously. I am not sure how OP is coming up with "trillions and trillions" needed in margin,
when in fact it is more in the millions and millions, maybe up to a billion.
First, commodities (or anything overall) didn't crash in the lead up to this announcement late Friday, and you can guarantee there is always, always
front-runners who get wind of these decisions prior to the announcment.
When CME raised its gold and silver margins, both were hammered inexplicably many hours, if not days, beforehand for no apparent reason. Of course,
when the decision was actually announced, it had next to no affect on prices as it was already priced in (then proceeded to climb back up).
When billions are at stake, the big players don't hold back, and the CME have never been known for transparency: the impending decision would 100%
have been telegraphed to those in the know (it's not like the CME only began thinking of it at 7pm Friday night) who would've offloaded big time
Friday afternoon (if such a market-wide sell-off was certain when the announcement hits markets).
I don't see doom over this. CME is just one exchange anyway, and is not the center of the universe as far as trades go. The CME want these new MF
accounts as customers, it doesn't want them liquidated and out of the game, as it's their bread and butter. I suspect anyone who can't raise the
relatively small percentage in margin will be given a few days to come up with it, and in the meantime their accounts will not be active.
If I'm wrong, I'll be the first to admit it, but I just don't see the level of collapse being insinuated on here over this.
edit on 5-11-2011 by cloudbreak because: clairfy