So basically the exchange doesn’t care where the price goes; they are charged with the responsibility to maintain an orderly marketplace. Any one can play. Nobody can default.
In 1980, COMEX (now part of CME) after increasing margin day after day in response to the HUNT brothers attempt to corner the silver market with accompanying rally, the exchange finally ordered liquidation only, i.e. no new trading. This had the effect of sharply dropping the market, obviously. This is also not the optimal response to disorderly market conditions.
Note that in response to the chaos of the credit markets in 2008, that we passed legislation called Dodd Frank and as a result, whole new classes of financial instruments are moving to exchanges to be cleared daily. The point of this is to create greater transparency and stability in the markets. They are CORRECT in observing that our markets (traditional exchange-cleared commodity futures) are the most stable (not price, but performance), most secure, most transparent and most best run in the world and that clearing fixed income and credit securities on central exchanges is a good thing to do.
This is how it works. (Not to say that other aspects of implementation are working but central clearing for previously bilaterally settled markets DOES work.)
“DH, you have a job, you have an apt., you pay bills. Guess what?! You are GROWN UP!”
depressing 🙁
this rain freakin blows.
That is, they don’t read your emails but they scan for keywords, basically.
I would guess that this is true, prezanon. Very Minority Report.
I appreciate your posts, NOP.
prez- yes
“ahem, some of us are still growing up in brooklyn”
DH, you have a job, you have an apt., you pay bills. Guess what?! You are GROWN UP!
So basically the exchange doesn’t care where the price goes; they are charged with the responsibility to maintain an orderly marketplace. Any one can play. Nobody can default.
In 1980, COMEX (now part of CME) after increasing margin day after day in response to the HUNT brothers attempt to corner the silver market with accompanying rally, the exchange finally ordered liquidation only, i.e. no new trading. This had the effect of sharply dropping the market, obviously. This is also not the optimal response to disorderly market conditions.
Note that in response to the chaos of the credit markets in 2008, that we passed legislation called Dodd Frank and as a result, whole new classes of financial instruments are moving to exchanges to be cleared daily. The point of this is to create greater transparency and stability in the markets. They are CORRECT in observing that our markets (traditional exchange-cleared commodity futures) are the most stable (not price, but performance), most secure, most transparent and most best run in the world and that clearing fixed income and credit securities on central exchanges is a good thing to do.
This is how it works. (Not to say that other aspects of implementation are working but central clearing for previously bilaterally settled markets DOES work.)
About the 6:21 mention of Google, I haven’t checked that site, but when I thought of getting a Gmail account, this message came up:
“… we display ads you might find useful that are relevant to the content of your messages. … ”
Does this mean they monitor the contents *within* our email messages? That just sounds weird.
ugh, i need a job that doesn’t involve staring at a computer screen all day.