CFTC Vacates CME Clearing Europe Limited Registration as a Derivatives Clearing Organization!

• There appears to be quite alot of things happening behind the scenes in the financial derivatives market with regard to Greece’s default and triggering of CDSs. The rats are abandoning ship, taking cover because they expect something bad to happen!
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  CFTC Vacates CME Clearing Europe Limited Registration as a Derivatives Clearing Organization! 
  by Ed Steer, http://www.caseyresearch.com/
  According to financial analyst Louis Boulanger out of Auckland, New Zealand…”Something very nasty may be about to happen in the derivatives complex…”
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  “Why would this latest announcement be important? Because it is the latest in a series since last week’s Greek government default on its sovereign debt and, while the mainstream financial media would have you believe this was a ‘non-event’ or ‘orderly default’ with minimal consequences, the truth of the matter is that we will not know how ‘orderly’ the default will be until the announced auction of the bonds to be swapped takes place next week at the date set by the ISDA. But, irrespective of the outcome next week, please note that last Friday WAS, in fact, the first sovereign debt default from a developed nation since World War II. That alone, makes it a very significant event.”
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  “Since the default, there seems to be a raging wildfire behind the scenes as maybe the entire Credit Default Swap (CDS) market is stressed due to the Greek default. The losses may come fast and furious once the auction is held on March 19^th, based on ISDA’s Big Bang Protocol.”
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  Yesterday I ran the story that the CME’s chairman was leaving at the end of 2012. One wonders if this turn of events, plus others, is behind it. We’ll see.
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  Here’s the press release from the CFTC’s website…and I thank reader ‘David in California’ for bringing this must read story to our attention. The link is here.

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