• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 9 hours Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents, building nukes * Too late now
  • 4 hours OPEC will consider all options. What options do they have ?
  • 36 mins Recession Jitters Are Rising. Is There Reason To Worry?
  • 14 hours Russia Accuses U.S. Of Stoking Tensions With Missile Test
  • 5 hours What to tell my students
  • 5 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 18 hours With Global Warming Greenland is Prime Real Estate
  • 6 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 10 hours TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 1 hour Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 day In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 21 hours Get First Access To The Oilprice App!
  • 11 hours Flaring is at Record Highs in Texas
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Is Today the Most Important Date in Financial History?

I'm being hyperbolic. A little.

Today is the last--and most major--implementation date for new derivatives trading rules in the U.S.

Starting this morning, all traders of swaps (the biggest category of global derivatives) will be required to trade these instruments through central clearing houses. This includes large institutional investors.

Smaller groups of swaps traders have already begun cleared trading. Swap dealers and active private funds started in March. And third-party investment managers began in June.

But today's group is the biggest shoe to drop yet. And signals a major change in the massive global derivatives market.

Prior to this, swaps were traded in person-to-person transactions. No one outside knew pricing or volumes for the transactions.

But the new central clearing houses firing up today will be collecting all trade information. And reporting it. In many cases, near real-time.

This will at long last bring price discovery to the swaps market. Up until now, holders of such instruments were able to value swaps according to their own internal models. But no more. The market will now decide what swaps are worth.

Hopefully the discovered market pricing is close to what holders have modelled. The global swaps market is worth $456 trillion, according to Bank of International Settlements. Even a 1% write-down on that amount would dwarf the financial loses we saw in 2008.

Remember this date.

Here's to being ready,

By. Dave Forest




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play