the bloodbath has stabilized a little. now I wonder was there any way to know ahead of time that the DOJ was reviewing this issue? or are these things kept private?
This was not a "ruling", as someone suggested. It was merely a comment letter from the Justice Department to the Treasury regarding interest rate derivatives. Treasury is free to ignore it. Unless I am missing something, the reaction is way overdone. It is however sadly typical of the utter incompetency of the Bush Justice Department. They took a position that is diametrically opposed to one they took last summer, apparently because a couple of foreign exchanges failed to make inroads. They manage to destroy 15% of the value of one of the few companies in America that is a world beater.
I actually think this is more of a prodding by officials from the new upstart exchange that is in the works. The inclusion of the failed foreign exchanges is just a smokescreen. The DOJ couldn't give a shit about a failed foreign exchange. They didn't back then and they don't now.
It appears the only reason it's up after hours is this http://www.reuters.com/article/marketsNews/idUKN0654198220080206?rpc=44 Seems more reasonable that some brokerage upgraded after close today? 8.5M shares traded a record on CME? also bloomberg latest http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=CME:US&sid=aZENNw246z90
I bought some at 533 and 498. So is anyone in the camp that this thing will get reaccumulated back up to at least 550? I can't resist buying a falling knife like this when this may be nothing in the end. (it was just staff comment, not actual policy issue)
I took a decent hit in CME today. Bought initially around 540 added some then cut the pain when it broke 500. I've watched and traded this thing for a couple years now. Every time it has been hit in the past it has rebounded. I've seen days when it's down 30 or 40 and turns green by the close. Today the price action was different. There was no bottom and no bid or bounce. Pure ugly if you were long like me. It'll probably gap up to 520 tomorrow. Live to fight another day. Good luck hope it spikes for you.
I have CME in my long-term account with covered calls. My cost basis for the shares is about $519, accumulated over the years with dollar cost averaging. Had sold the March 580 calls when they came tumbling down earlier this year for $39.50 and covered half today at about $12.50. I'll probably continue buying some CME shares over the next few years. Great company and I think this can be resolved by spinning off the clearing operation. Record trading is announced every month, and probably will continue to do so. 17% is a bit much of a sell-off just because of this.