IBKR's CEO Peterffy Says CME Group Credit Swap Plan Puts IB at Risk

Discussion in 'Wall St. News' started by Daal, Oct 22, 2008.

  1. Daal


  2. Thanks for the url.
    IB can say good bye to a lot of accounts if they get involved in CDS and mix it's futures and credit-swaps business.
    CME is at risk as well.
  3. Cutten


    A segregated clearinghouse for CDS, as proposed by ICE, looks like a better proposal.
  4. Dude, they have no plans to MIX anything at all, no less get involved with the scummy CDS racket.

    They are talking out the morons at the CME forcing everyone to insure a proposed new CDS market, even though they might not even trade in it.

    IB may or may not allow trading in a regulated CDS market, but they are objecting to the co mingling of the liability with futures.
  5. Are all firms that offer products at the CME potentially affected by this, or just the ones that are their own clearing house?

    How in the world do you set margin for CDSs? Aren't they kind of all or nothing?
  6. these CDS are moving from one area of the markets, from brokerages, to insurance shops, to banks, and now potentially to futures exchanges, like the black plague, wreaking havoc with wherever and whatever they touch.

    agree completely they belong unto themselves, with the responsibility being borne only by those that choose to transact in them directly.

    I suppose that statement is not altogether going to be fact, as to date the US Taxpayer has 'picked up the tab' for some of this toxicity, let alone everyone else around the globe.

    There is no sense in decimating the futures exchanges, best to create an entirely separate entity to 'deal with it'.

    While they're at it, may as well have Hazmat teams stationed nearby at the ready.

    These fuckin things are sucking the life outta everything they come near. May have to rotate funds outta futures and trade etf's if they persist with this ruinous folly.

    can you say, 'man the lifeboats!'
  7. mokwit


    Looks like another attempt to push the risk onto the public.

    While on the subject of the Chicago exchanges, check out the small print on the supposed protection of segregated CFTC accounts - they can use your account to pay off a big traders loss.
  8. mcheema


    This is really bad news if it happens.
    I agree it is just another attempt by the losers to push risk onto the winners.
  9. mcheema


    mokwit can you give me a link on that cftc claim.
    I have a futures account and must admit never really looked closely enough at my exposure.
  10. mokwit


    Don't have a link or exact source, its just something I discovered through having funds with Refco CFTC side....................

    My guess is the derivation is that large traders wanted a way to create an option payofff profile for themselves - they would keep a sufficient for daily trading amount in their acount and solicit external funds to the level of their expected worst likely loss. Heads the big local wins, tails he alks and the exchange uses the money in the solicuted accounts to cover his loss.Think about it, do some big local traders also have others acounts for some reason?. Why would they bother?

    If I have this wrong by all means correct me.
    #10     Oct 23, 2008