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The CME....what does it mean?
03-16-2012, 11:08 PM
Post: #1
The CME....what does it mean?
CME stops clearing euro derivatives, but I'm not sure of the significance of this, if any. I'm sure there are other clearinghouses for derivatives, and I don't think this has anything to do with who is responsible for paying out...so why am I reading that this is indicative of major problems re Greece?

Thanks for any insight you can provide.
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03-17-2012, 12:10 AM
Post: #2
RE: The CME....what does it mean?
Why would the CME voluntarily take itself out of what must be a very lucrative business? Are they getting out of the way of a train wreck that's coming? One that should have happened in 2008, Bush's 'House of Cards"? Is Greek default about to implode the entire derivatives market? Also, the CME head resigning (retiring), whistl eblowers beginning to jump ship.
..........................

Bix Weir

The CFTC just released this announcement related to the CME withdrawing as a European Derivatives Clearing House:

March 13, 2012
CFTC Vacates CME Clearing Europe Limited Registration as a Derivatives Clearing Organization
Washington, DC–At the request of CME Clearing Europe Limited (CMECEL), pursuant to Section 7 of the Commodity Exchange Act, the Commodity Futures Trading Commission issued an Order on March 13, 2012, vacating the registration of CMECEL as a derivatives clearing organization.
http://www.cftc.gov/PressRoom/PressReleases/pr6208-12

Did you catch that the removal of the status was “AT THE REQUEST OF THE CME”?

There is a RAGING wildfire behind the scenes as the entire $50,000,000,000,000 Credit Default Swap market is imploding due to the Greek default. The losses will come fast and furious once the auction is held on March 19th. The ISDA’s 2009 “Big-Bang Protocol” will be put to the test next week.
..............


http://www.brotherjohnf.com/uncategorize...ly-solved/

..................



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03-17-2012, 10:18 AM
Post: #3
RE: The CME....what does it mean?
Thanks, agsilverbear! I had seen those articles, but not the video. However, I still don't understand what the big deal is about the CME. Maybe they simply didn't want to allocate the resources it would take to clear CDSs on the level that will not only be coming out of Greece, but from what is increasingly looking like from at least a couple other PIIGS countries as well? If it had to do solely with running for the hills, wouldn't you expect to see other clearinghouses making a run for it, too?

I just don't understand enough about the role of the clearinghouse to understand the significance here, if any. Here is an article that explains some things, but it is still as clear as mud to me.

http://www.reuters.com/article/2009/12/0...6220091203
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03-17-2012, 02:26 PM
Post: #4
RE: The CME....what does it mean?
thnks for the articles and vid. very informative
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03-17-2012, 02:58 PM
Post: #5
RE: The CME....what does it mean?
KYnyts,

The derivatives market is a complicated mess and I don't understand how the clearing houses work, either. Maybe all of the signs of possible trouble on the horizon listed by Mr.Akamkk on the other thread Big Build Up To What? , Mr. Donahoe's resignation, and the CME pulling out of European derivatives clearing are all unrelated to each other with more mundane explanations than a pending CDS implosion. It's anybody's guess. I hope they are able to kick the can further down the road.
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03-17-2012, 08:11 PM
Post: #6
RE: The CME....what does it mean?
(03-17-2012 02:58 PM)agsilverbear Wrote:  KYnyts,

The derivatives market is a complicated mess and I don't understand how the clearing houses work, either. Maybe all of the signs of possible trouble on the horizon listed by Mr.Akamkk on the other thread Big Build Up To What? , Mr. Donahoe's resignation, and the CME pulling out of European derivatives clearing are all unrelated to each other with more mundane explanations than a pending CDS implosion. It's anybody's guess. I hope they are able to kick the can further down the road.

I do, too. The closer we get to reboot...the more I think we need more time. Did you see that new executive order giving Obama control over all resources, including food, water, etc? What good is it to prepare when they can just come and take it from you anyway...lol? I'm discouraged.
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03-18-2012, 03:09 AM
Post: #7
RE: The CME....what does it mean?
(03-17-2012 08:11 PM)KYnyts Wrote:  
(03-17-2012 02:58 PM)agsilverbear Wrote:  KYnyts,

The derivatives market is a complicated mess and I don't understand how the clearing houses work, either. Maybe all of the signs of possible trouble on the horizon listed by Mr.Akamkk on the other thread Big Build Up To What? , Mr. Donahoe's resignation, and the CME pulling out of European derivatives clearing are all unrelated to each other with more mundane explanations than a pending CDS implosion. It's anybody's guess. I hope they are able to kick the can further down the road.

I do, too. The closer we get to reboot...the more I think we need more time. Did you see that new executive order giving Obama control over all resources, including food, water, etc? What good is it to prepare when they can just come and take it from you anyway...lol? I'm discouraged.
I didn't hear about the new executive order. I don't think they have the resources to go to every house and take their food stores. Americans are armed so I don't see government agents going house to house to confiscate peoples food and water. It's not worth it. Too much work and risk for little gain. If they started doing that people would just hide their food anyway. I think a lot of this is to induce fear, perhaps to discourage people from preparing? Then again they tell people to prepare. I'd be more concerned about hungry, desperate people coming to take it way if it ever came to that. But I don't think it will. I really think the US will just descend into socialism like Europe has. Britain lost it's position as the first world power and it didn't descend into anarchy. For me, the food storage is 1) we don't know for sure what's going to happen 2) inflation/hyperinflation.
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03-18-2012, 10:44 AM
Post: #8
RE: The CME....what does it mean?
(03-18-2012 03:09 AM)agsilverbear Wrote:  I didn't hear about the new executive order. I don't think they have the resources to go to every house and take their food stores. Americans are armed so I don't see government agents going house to house to confiscate peoples food and water. It's not worth it. Too much work and risk for little gain. If they started doing that people would just hide their food anyway. I think a lot of this is to induce fear, perhaps to discourage people from preparing? Then again they tell people to prepare. I'd be more concerned about hungry, desperate people coming to take it way if it ever came to that. But I don't think it will. I really think the US will just descend into socialism like Europe has. Britain lost it's position as the first world power and it didn't descend into anarchy. For me, the food storage is 1) we don't know for sure what's going to happen 2) inflation/hyperinflation.

It's just all so bizarre. It isn't like these steps haven't even been taken in this country's history, but generally it was before/during WWI, WW2, the Korean War, etc. We aren't in the midst of such a war as far as I've noticed, so it feels odd to me that they are enacting this kind of legislation right now.

I feel like I am missing critical pieces of the puzzle. I keep looking for them, but they are proving to be elusive. I guess it doesn't really matter whether I understand it or not, but that's just how my brain works...lol. I have a need to understand things.

You made some really good points, most notably, "we don't know for sure what's going to happen." Ah well...let's just keep stacking as we watch it all play out. We will find out soon enough. Wink
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