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Reply #4: False Alarm. [View All]

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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.


http://kiddynamitesworld.com/the-cme-margin-notice-that...
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