In The News Today

Posted at 2:03 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Manipulators are so brazen they do whatever the hell they want whenever they want to show who is boss.

When Eric and I mused about gold having made a bottom at $1630 they sure showed us the next day at $1620.

Traders Walk Out of CME Eurodollar Pit to Protest Trade
By Matthew Leising – Apr 13, 2012 4:01 PM ET

Local traders in the CME Group Inc. (CME)’s Eurodollar options pit walked off the job today to protest a block trade yesterday.

“These guys that stand in there all day and make prices would have loved to participate in that particular price, but they weren’t able to,” Rocco Chierici, a broker at R.J. O’Brien & Associates on the floor of the Chicago Mercantile Exchange, said in a telephone interview.

Traders in the Eurodollar pit on the CME Group trading floor in Chicago. Photographer: Scott Olson/Getty Images

Prices for the block trades of options on Eurodollar futures were higher than offers in the pit, which wouldn’t be allowed in open-outcry trading, Chierici said. Local traders buy and sell for their own account and in the process help add liquidity to a market. Block trades are privately negotiated transactions that are conducted outside the normal pit or via computer-based trading systems used by exchanges.

“There are rules that prohibit that in the pit, but you can circumvent the pit” in a block trade, Chierici said. “I believe they wanted to make the point that the system is not fair.”

Six block trades totaling 215,200 options traded at 8:11 a.m. Chicago time yesterday, according to CME Group’s website. The trade was rolling positions from April contracts, which expired today, into June contracts.

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Jim Sinclair’s Commentary

Here is our newest addition that is yet to be named, but is already wholeheartedly welcomed. She is a very proper little girl.

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