FYI:
https://oklahoman.com/article/5660648/hamm-calls-for-investigation
"Hamm points out the Chicago Mercantile Exchange announced April 8 that if WTI oil futures settled at a price between $8 and $11 a barrel that the exchange could switch to a different model that would allow for negative pricing.
He quotes the exchange’s announcement in his letter, which said in part, “CME Clearing will send out an advisory notice with one day notice before any implementation occurs with all appropriate details.”
There is also some news that Bank of China and other Chinese banks issued investment products linked to the oil futures that were sold to retail investors in China, and the large drop at the last 20 minutes prior to settlement caught the Chinese banks off guard and a large swath of those investors now owe money to the banks as a result of the negative settlement. Bank of China has stated that it is currently in contact with the CME regarding the matter.
https://oklahoman.com/article/5660648/hamm-calls-for-investigation
"Hamm points out the Chicago Mercantile Exchange announced April 8 that if WTI oil futures settled at a price between $8 and $11 a barrel that the exchange could switch to a different model that would allow for negative pricing.
He quotes the exchange’s announcement in his letter, which said in part, “CME Clearing will send out an advisory notice with one day notice before any implementation occurs with all appropriate details.”
There is also some news that Bank of China and other Chinese banks issued investment products linked to the oil futures that were sold to retail investors in China, and the large drop at the last 20 minutes prior to settlement caught the Chinese banks off guard and a large swath of those investors now owe money to the banks as a result of the negative settlement. Bank of China has stated that it is currently in contact with the CME regarding the matter.
