Central Bank Equities Buying

[Stockolio]

CME Globex Central Bank Incentive Program February 2019

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 solely for the benefit of, and in the Qualified Participant’s name. •Register one or more portfolio managers or representatives. •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 prohibiting participation).

https://www.cmegroup.com/company/membership/files/CBIPFAQ.pdf

 

[sle]

CME Globex Central Bank Incentive Program February 2019

It's for the bond futures and interest rate products, not for equities. Pretty much every CB out there holds US dollars and many use synthetic cash to term conversion via futures.

Swiss Central Bank is a hedge fund... Central banks buying lots of sp 50 at a retarded level in 2019, what do you think is gonna happen when they sell those lots ?

First of all, most probably NOTHING will happen. In their top holding by cash value (AAPL), they own less than a day of volume. Even if they decide to dump it all in a day, they will move the stock by about a day worth of volatility (and that assumes they will be transparent about it). For AAPL that would be about 1%. Second of all, these holdings are part of the asset buying program to fight deflation so it's unlikely they will dump unless Swiss economy recovers dramatically.

Japanese have been doing it for way longer than either Chinese or Swiss CBs, it was a natural progression from JGB purchases.

 

[eurusdzn]

You mean the sky is not falling, the creek and bad moons are not rising?
I still hear the voice of raze and ruin.
Dont go a'roun tonight.

 

[sle]

You mean the sky is not falling, the creek and bad moons are not rising?

Coming from the gym, I saw these 4 dudes on horses, dressed in black. Wonder what's that all about?

 

[eurusdzn]

Central bankers out on the town cuttin' loose.

 

[sle]

Central bankers out on the town cuttin' loose.

Powell, Draghi, Carney and Kuroda - the four horsemen of modern monetarism!

 

[vanzandt]

You mean the sky is not falling, the creek and bad moons are not rising?
I still hear the voice of raze and ruin.
Dont go a'roun tonight.

CCR

 

[eurusdzn]

Powell, Draghi, Carney and Kuroda - the four horsemen of modern monetarism!

Amazon rates this book title 4.5 stars in the fundamental analysis category. More relevant in todays world than Grahms' Security Analysis masterpiece , says Zerosludge.

 

[Stockolio]

It's for the bond futures and interest rate products, not for equities. Pretty much every CB out there holds US dollars and many use synthetic cash to term conversion via futures.


First of all, most probably NOTHING will happen. In their top holding by cash value (AAPL), they own less than a day of volume. Even if they decide to dump it all in a day, they will move the stock by about a day worth of volatility (and that assumes they will be transparent about it). For AAPL that would be about 1%. Second of all, these holdings are part of the asset buying program to fight deflation so it's unlikely they will dump unless Swiss economy recovers dramatically.

Japanese have been doing it for way longer than either Chinese or Swiss CBs, it was a natural progression from JGB purchases.

Wrong again... They dipped Equities big time, who has been buying the SP Index in February ?

 

[sle]

Wrong again... They dipped Equities big time, who has been buying the SP Index in February ?

But of course, you are the only one who is always right.

However, could you be a bit more clear what am I wrong about:
* do you disagree that CME CBIP program is primarily geared for interest rate and bond futures?
* Or maybe you disagree with the fact that BoJ has been buying ETFs for a while now?
* Or maybe you disagree with the fact that there is 80-100 billion of S&P 500 equities on the balance sheet of SNB?
* Do you not think that is relatively small (under a percent of ADV) and will not cause the end of the world?
* Or you are making yet another statement that I can't understand?