FYI: https://oklahoman.com/article/5660648/hamm-calls-for-investigation "Hamm points out the Chicago Mercantile Exchange announced April 8 that if WTI oil futures settled at a price between $8 and $11 a barrel that the exchange could switch to a different model that would allow for negative pricing. He quotes the exchange’s announcement in his letter, which said in part, “CME Clearing will send out an advisory notice with one day notice before any implementation occurs with all appropriate details.” There is also some news that Bank of China and other Chinese banks issued investment products linked to the oil futures that were sold to retail investors in China, and the large drop at the last 20 minutes prior to settlement caught the Chinese banks off guard and a large swath of those investors now owe money to the banks as a result of the negative settlement. Bank of China has stated that it is currently in contact with the CME regarding the matter.
PFG Best. I think they recovered less then $.40 on the dollar but that was outright fraud. Refco and MF Global they were made whole.
Yes, the AMP Statement was "This is an unprecedented times....YOU must trade responsible. " Which is 100% accurate...one would think that this type of statement would not need to be sent out to active traders...but after this Market Action for Crude Oil (CL) May 2020 Contract - Traded Negative for the 1st time in History and Stock Indices Markets hitting trading halt limits...we have heard too many times from our customers "I did not know..." We only had a few customers caught Long Crude Oil (CL) & E-Mini Crude (QM) May 2020 Contract. We have no issues with Liquidity and no issues with our operations. Here is the full notice for you to review: https://news.ampfutures.com/temporary-margins-increase-energies-complex-april-2020
I bought a QM contract at a price of 0.15 and could not close at a negative price in IB. And they did not cover me on margin call. Lost all the money, my account is below zero.
I notice you don't mention how much those accounts went negative? Also saying 'a few customers' isn't reassuring, if those few were trading large size in aggregate.
No customer of any US-regulated futures broker has ever lost money due to another customer's trading losses.
true that but crude has never traded down to -$40 in a matter of minutes either i’m pretty sure every fcm got whacked. that’s the risk they take i mean the chances that any of them will go bust are very small but i think some caution is justified
No buying oil for 2 months https://www.reuters.com/article/us-...ts-no-buying-oil-for-two-months-idUSKCN2253P6