Don’t Worry About The NYSE: If The CBIP Fails, It’s Time To Panic
Submitted by Tyler Durden on 07/08/2015 12:18 -0400
The NYSE crashed and almost nobody noticed (for a few minutes) because market levels were stable (and because retail is long gone). Why? Because most trading these days is done via derivatives anyway on exchanges like the CME, where one specific program may be the buyer of last reserve today: the CBIP.
1. What is the Central Bank Incentive Program?
The Central Bank Incentive Program (“CBIP”) allows Qualified Participants to receive discounted fees for their proprietary trading of CME Group products. All trading activity under the CBIP must be conducted directly through accounts registered to the Qualified Participant or separate accounts managed by a third party on behalf of the Qualified Participant. Qualified Participants receive discounted fees on CME, CBOT, and NYMEX products and COMEX futures products for electronic trading only. Qualified Participant will receive discounted fees January 1, 2015 through December 31, 2015.
2. How does an applicant qualify for the CBIP?
To qualify for and become a participant in CBIP (a “Qualified Participant”), the applicant must:
Be a non-U.S. central bank, multilateral development bank, multilateral financial institution, sub-regional bank, aid coordination group, or an international organization of central banks
Complete a CBIP application and be approved by CME Group
Execute all trades in the Qualified Participant’s name
Register one or more portfolio managers
Have a relationship with a CME Group clearing member
Have authority to participate in a fee incentive program (i.e. no public or internal policies prohibit participation)
Jim Sinclair’s Commentary
What is the difference between animals and people? A lot.
The Hug of the Century
Published: July 14, 2014
A woman found a badly injured lion in the forest. She took it with her and nursed it back to health. When it was better, she made arrangements with a zoo to take the lion and give it a new and happy home. This video was taken when she returned to the zoo some time later to see how her lion was doing. Watch the lion’s amazing reaction when he sees her!