Ronin Capital Blows Up, Unable To Meet CME Capital Requirements After VIX Trade Goes Wrong

Source: https://www.zerohedge.com/markets/ronin-capital-blows-unable-meet-cme-capital-requirements-after-vix-trade-goes-wrong
Published: Mar 20, 2020
Author: Tyler Durden
Post Date: 2020-03-20 20:58:59 by Horse
Views: 488

One of the CME’s direct clearing firms was unable to meet its capital requirements on Friday, forcing the exchange to step in and invoke its "emergency protocols" to auction off the firm's portfolios.

Poster Comment:

CME is Chicago Mercantile Exchange.

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#1: Lod    To: Horse (#0)

Sounds like a penny-stock type exchange.

Lod posted on 2020-03-21 02:59:05   Reply   Private Reply

#2: Horse    To: Lod (#1)

Today, CME is the largest options and futures contracts open interest (number of contracts outstanding) exchange of any futures exchange in the world. The Merc trades several types of financial instruments: interest rates, equities, currencies, and commodities.

CME also pioneered the CME SPAN software that is used around the world as the official performance bond (margin) mechanism of 50 registered exchanges, clearing organizations, service bureaus, and regulatory agencies throughout the world.

Horse posted on 2020-03-21 07:18:06   Reply   Private Reply