Losses due to negative crude prices. Who's responsible?

Discussion in 'Retail Brokers' started by CALLumbus, Dec 28, 2020.

  1. tiddlywinks

    tiddlywinks

    Good post @Baron, spot on.

    Problem is...
    1) It's class action. You know there are others, but no Elitists of course.
    2) Drawing attention to futures brokers in todays social environment may not be wise. Futures traders do enjoy or have access to a few perks.
     
    #11     Dec 28, 2020
  2. Overnight

    Overnight

    Mreh, there is still a problem I am having with this whole boondoggle...The CME not stating they dropped their low-limit levels while claiming the prices could go negative. The fuq was with that. As I mentioned above, I am sure AMP will get through it. If they want me as some sort of witness, I will do it.

    Something was totally awry about how the CME handled it. Spidey-sense is tingling on that one as hard as it ever had...like on ZB32.
     
    Last edited by a moderator: Dec 29, 2020
    #12     Dec 28, 2020
  3. Take 100% of ownership of my decisions. Sure that sounds agreeable. But if my broker filled me at price levels that were not reflective of market conditions then I would sue my broker, too, if the broker did not correct its mistake. Not saying this specific example was the case here at all. I just try to make a point that the decisions of the trade should be owned by the trader, but the outcome can be skewed by a myriad of external factors, some of which are just part of the business and are expected to be accepted. But others are in violation of agreements and certain fiduciary duties. Such should not be and does not have to be tolerated and the law and regulations offer different avenues of remedy.

     
    #13     Dec 28, 2020
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  4. Did anybody actually take physical delivery plus the cash per barrel?
     
    #14     Dec 28, 2020
  5. Overnight

    Overnight

    A 60/40 capital gains tax split is damned perky to me! Woohoo! It even has a theme song!

     
    #15     Dec 28, 2020
  6. bone

    bone

    My sense is that the best case scenario for plaintiffs is to get their liquidation marks adjusted to zero. And I think that’s a stretch considering the Globex Nymex trading session had been ongoing for 20 hours and 8 minutes before the first zero price print appeared at 2:08 PM on April 20.

     
    #16     Dec 28, 2020
  7. Overnight

    Overnight

    Setec Astronomy.
     
    #17     Dec 28, 2020
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  8. bone

    bone

    Reading the lawsuit my impression wasn’t that the plaintiffs were buying at zero as an opening initial position.

     
    #18     Dec 28, 2020
  9. Overnight

    Overnight

    Setec Astronomy. That's the last time I'll mention it on this issue.

     
    #19     Dec 28, 2020
  10. bone

    bone

    This isn’t a first in physically settled energy markets. Negative demand balances are a real thing.

    The Edmonton, Canada Propane cash market traded negative in June 2015.

    There are instances of hourly electricity prices trading negative.

    It is entirely possible that you will see negative natural gas prices here in the US in the foreseeable future.
     
    Last edited: Dec 28, 2020
    #20     Dec 28, 2020
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