New York Times har publicerat en artikel med titeln ‘A Secretive Banking Elite Rules Trading in Derivatives‘ som återigen bevisar hur riggat vårt finansiella system är, något som vi tagit upp åtskilliga gånger här tidigare. För regelbundna läsare bör därför detta inte komma som någon direkt överraskning. Läsning rekommenderas dock.
Här är ett utdrag från artikeln:
On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.
The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.
Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk.
In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks.
För den som inte har tid att läsa hela artikeln så har ZeroHedge gjort en summering av de viktigaste punkterna (se nedan):
* The most profitable product for banks currently are derivatives (and CDS in particular)
* As a result, the derivatives trading cabal wants to contain its members to as few as possible, and to preserve the status quo indefinitely
* Margins on CDS can be anything as there is no central clearing or pricing mechanism; buyers and sellers rely on the broker to present an honest market
* The trading desk spread profit on a CDS contract is 0.1% of notional ($25,000 of $25,000,000)
* Spreads can be as wide as the banking cartel (Goldman, as most other banks just price at Goldman levels) deems them to be
* Banks do not want to trade CDS on exchanges as that would kill margins
* Citadel tried to make CDS trading into a HFT operation. It failed (for now)
* Markit is a dominant industry-controlled player, and prevents transparency (and thus keeps margins high) in the market by not allowing broad dissemination of CDS pricing
* Regulation is powerless to break the cabal’s control
Passar på att inkludera en länk till ett favoritinlägg – Hur funkar derivatmarknaden?