Houston TX
Legendary Market Wizard
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192
|
Temporarily exempting a bank from a requirement to register as a “Major Swap Participant” is not bailing them out. I suspect what has happened here is that the Bank has hedged positions with its customers and the market has moved so much that the PnL on the customer sides has suddenly become so large they have to register with the CFTC. The assertion that if prices do not recover by September they will have issues is also probably incorrect. The part of the crude curve that has moved and created this exposure is the next 3 months. By September this exposure will have expired/priced off their books.
|