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Ruby the Liberal Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Nov-05-11 02:01 PM
Response to Original message
4. False Alarm.
This was in relation to Corzine's MF Global implosion this week and the initial margin requirements for transferring MFG customers to maintenance margin levels.

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.
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  -For anyone who caught the CME post on Zerohedge yesterday its been updated. dkf  Nov-05-11 12:42 PM   #0 
  - Thanks for the word salad. What is CME?  kestrel91316   Nov-05-11 12:53 PM   #1 
  - Haha. I asked for an explanation too, on an earlier thread.  mainer   Nov-05-11 12:54 PM   #2 
  - The initial post used the term "defcon1" as it looked like they were raising margin requirements  dkf   Nov-05-11 02:44 PM   #5 
  - cme=chicago mercantile exchange  Extend a Hand   Nov-05-11 01:11 PM   #3 
  - False Alarm.  Ruby the Liberal   Nov-05-11 02:01 PM   #4 
  - Spread like herpes lol.  dkf   Nov-05-11 02:47 PM   #6 
  - We're home!!!! Where is everybody!?!?!?!  DeSwiss   Nov-05-11 02:57 PM   #7 

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