JPMORGAN said yesterday that GOLD will be an acceptable pledge of collateral, even in repo operations. This revelation isn’t new as the CME GROUP and other clearing entities arranged for this last year.
Posts Tagged ‘CME Group’
Notes From Underground: JPMORGAN, returning to its roots, will accept GOLD as collateral
February 8, 2011Notes From Underground: How many rumors can sit on top of the media pinheads?
November 9, 2010Today saw an unwinding of some of the more frothy positions that have been built up since the FOMC announcement on SEPTEMBER 21. All asset classes, from stocks to commodities, have been rallying as the FED promised that it would do what it could to insure against the onset of a deflationary spiral. Many news outlets reported that the silver markets broke hard after CME GROUP raised margins on SILVER positions. The talking heads compared this to the Hunt brothers in 1980, which is COMPLETE UNADULTERATED RUBBISH. The margin increase was relatively small and nowhere near the type of actions taken in 1980 when some nearby silver contracts had a margin of 100 percent of the value of the contract. Also, margin rates are relatively low on a value of contract basis and as we also know much of the investment in silver is taking place in the ETF market where the future exchanges have zero influence.