More Metals Info Colin Hamilton, analyst at
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Colin Hamilton, analyst at BMO Capital Markets, said it was surprising the LME had let “someone build a short position” in excess of available inventory. “To have such a large short position when there isn’t enough inventory to deliver against it is exchange 101, ” he said. “That shouldn’t happen.”
https://www.ft.com/content/0269cdda-ef67-43c8...19c919b5fa
China Construction Bank Gets Reprieve on Metal Margin Calls
Quote:
Monday’s squeeze was driven by market participants with short positions being forced to close them out because they couldn’t meet margin calls, brokers and traders said. Bloomberg has previously reported that Chinese entrepreneur Xiang Guangda -- known as “Big Shot” -- had a large short position on the LME through his company, Tsingshan Holding Group Co., the world’s largest nickel and stainless steel producer.
Clearinghouses ask brokers to deposit cash, or “margin,” on a daily basis to cover potential losses on their clients’ positions . If the market moves against those positions, the clearinghouse makes a “margin call” to request further funds.
https://www.bloombergquint.com/markets/china-...rgin-calls
As the market continues to drop and inflation increases.... supply side of the market can not meet demand....increased interest rates puts pressure on debt as liquidity dries up . The Fed QE4 ends this week.
Prices have to rise to keep up with inflation!
$13
$CRGP
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Calissio Resources Group, Inc. (CRGP) Stock Research Links
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Quote:
If the broker-dealer fails to deliver for 13 days, the regulation imposes a “close out” duty to purchase and deliver securities “of like kind and quantity.”
https://www.bloomberg.com/opinion/articles/20...ify%20wall
https://www.scotusblog.com/case-files/cases/m...v-manning/