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Oh, "These transactions were entered into by a significant number of diverse market participants."? So, the insider info was shared widely? Well CME - if the a

Oh, "These transactions were entered into by a significant number of diverse market participants."? So, the insider info was shared widely? Well CME - if the allegations in Vanity Fair are indeed false, why not sue them for libel/publishing materially false information harmful to your company? Surely it would be a slam dunk case. Otherwise, I'm tempted to side with the investigative journalism that resulted in a dozen-paragraph article with facts and figures, over your "that's not true" one-liner.

H8crilA 7y ago
Look, this is perhaps the most traded future contract in the world. There are billions in nominal value rolling over all the time, it's just business as usual. The last hour of Friday is especially important because participants hedge their portfolios before the weekend starts and all markets are closed. US is the last big market to close each Friday. What really happened is that people traded contracts like always, and then big events happened. And one party of the transaction won, the other lost (on this particular position; you don't know their full portfolios nor you know their reasons for getting into that trade). Matt Levine (see Hanky-panky 2): https://www.bloomberg.com/opinion/articles/2019-10-18/half-a-share-of-stock-is-better-than-nothing https://www.bloomberg.com/opinion/articles/2019-10-18/half-a... I doubt the CME cares much about the "problem" to sue some low quality publisher. I'd say it warrants no more from them than this short paragraph written by their PR intern.
tigershark 7y ago
I think that it’s not unreasonable to exchange hundreds of thousands of contracts in the direction opposite to the current market trend given the volume of about 1.2M for ESU19. The instance where 386k were bought may be a little bit more suspicious, but then why they didn’t buy much more on Monday before the news when the price was much lower? They would have really done a killing doing so. I’m no trader but I’m quite skeptic of these accusations based on my once in a while glance at the ESU19 L2 market data in the past months.

H8crilA 7y ago

Look, this is perhaps the most traded future contract in the world. There are billions in nominal value rolling over all the time, it's just business as usual. The last hour of Friday is especially important because participants hedge their portfolios before the weekend starts and all markets are closed. US is the last big market to close each Friday. What really happened is that people traded contracts like always, and then big events happened. And one party of the transaction won, the other lost (on this particular position; you don't know their full portfolios nor you know their reasons for getting into that trade). Matt Levine (see Hanky-panky 2): https://www.bloomberg.com/opinion/articles/2019-10-18/half-a-share-of-stock-is-better-than-nothing https://www.bloomberg.com/opinion/articles/2019-10-18/half-a... I doubt the CME cares much about the "problem" to sue some low quality publisher. I'd say it warrants no more from them than this short paragraph written by their PR intern.

tigershark 7y ago

I think that it’s not unreasonable to exchange hundreds of thousands of contracts in the direction opposite to the current market trend given the volume of about 1.2M for ESU19. The instance where 386k were bought may be a little bit more suspicious, but then why they didn’t buy much more on Monday before the news when the price was much lower? They would have really done a killing doing so. I’m no trader but I’m quite skeptic of these accusations based on my once in a while glance at the ESU19 L2 market data in the past months.