Why Did The CME Secure A $10 Billion Credit Facility?

The credit facility was put in place in November 2017. It was brought to the public’s attention when Marketwatch picked up on an SEC filing which renewed the credit facility.  I don’t know if there’s any correlation per se, but the credit facility was established after it was clear that the price of gold and silver had started their next big bull market move with several Comex clearing member banks potentially catastrophically short gold and silver futures contracts.

Ultimately, the CME has 2 or 3 “safety nets” to guard against a default from any one CME clearing member from disrupting the entire CME house of cards. The fact the CME was compelled to establish another $7-10 billion “cushion” tells me that the central counterparties should be held responsible for their trading decisions by putting up a much bigger performance bond. Chris Marcus of Arcadia Economics and I discuss what’s going with the CME, Comex and precious metals market:


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2 thoughts on “Why Did The CME Secure A $10 Billion Credit Facility?

  1. Recall the use of the LBMA AM gold fix to tell those in the know where the DJIA was to close each day ended abrutly in January of 2018, close to the original credit facility formation in November. And in November and December of 2017, the last use of gold as a public key where the equations were being changed frequently, seemed to mark their inability to control the AM fix precisely enough for the gold fix to be used as the key.

  2. Dave,

    I’m disillusioned and cynical about this whole thing.
    I’ve been waiting a decade+ for the metals to break out.

    The whole world is falling apart right now, but the market maintains or even gains. Gold and Silver…… maintain. No rises, just a slope up only to get sledgehammered time after time.

    The bankers (elites, leaders, or Satanistst as I like to them) are in full control. As long as they remain that way, nothing will change. If the dollar becomes worthless, they’ll just outlaw the metals.

    I guess it is really up to us to make sure the above conclusions are disproved.

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