Losses due to negative crude prices. Who's responsible?

Good post @Baron, spot on.

Problem is...
1) It's class action. You know there are others, but no Elitists of course.
2) Drawing attention to futures brokers in todays social environment may not be wise. Futures traders do enjoy or have access to a few perks.
 
bone said:
I read the plaintiff’s lawsuit, and it would appear that they chose to sit on long positions marking wildly against them and didn’t even consider liquidating their stinkers until they saw a sustained and ongoing Zero price print.
More...

Mreh, there is still a problem I am having with this whole boondoggle...The CME not stating they dropped their low-limit levels while claiming the prices could go negative. The fuq was with that. As I mentioned above, I am sure AMP will get through it. If they want me as some sort of witness, I will do it.

Something was totally awry about how the CME handled it. Spidey-sense is tingling on that one as hard as it ever had...like on ZB32.
 
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Take 100% of ownership of my decisions. Sure that sounds agreeable. But if my broker filled me at price levels that were not reflective of market conditions then I would sue my broker, too, if the broker did not correct its mistake. Not saying this specific example was the case here at all. I just try to make a point that the decisions of the trade should be owned by the trader, but the outcome can be skewed by a myriad of external factors, some of which are just part of the business and are expected to be accepted. But others are in violation of agreements and certain fiduciary duties. Such should not be and does not have to be tolerated and the law and regulations offer different avenues of remedy.

Baron said:
What a joke...

So the "class action" is a whopping three people who obviously lost their asses because they didn't know what they were doing, so now they're trying to pull the victim card and blame their losses on the broker.

This brings us to what I consider to be the #1 lesson for every person who decides to start trading:

Take 100% ownership of your actions. And I mean 100%. The consequences of your trading will always be a direct reflection of the choices that YOU MAKE.

And the same principle applies in every other aspect of life:

Your choices will always dictate your outcome. That's it. The choices you make for yourself, the choices you make for your family, and the choices you make in regards to who you associate with will determine the outcome you receive in all of those areas.

If you ever want to read a good book in regards to this topic, here's one I recommend. It has a military slant to it, but it still applies to every area of your life.


The bottom line is that any of those traders in the complaint could have exited their positions well before crude went negative. But they didn't. And because they didn't, and because they can't accept responsibility for their own choices, they are now choosing to cast the blame on someone else due to a scenario that never happened before in the history of crude trading prior to that date.
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My sense is that the best case scenario for plaintiffs is to get their liquidation marks adjusted to zero. And I think that’s a stretch considering the Globex Nymex trading session had been ongoing for 20 hours and 8 minutes before the first zero price print appeared at 2:08 PM on April 20.

Overnight said:
Mreh, there is still a problem I am having with this whole boondoggle...The CME not stating they dropped their low-limit levels while claiming the prices could go negative. The fuq was with that. As I mentioned above, I am sure Mr. Culp will get through it. If he wants me as some sort of witness, I will do it.

Something was totally awry about how the CME handled it. Spidey-sense is tingling on that one as hard as it ever had...like on ZB32.
More...
 
bone said:
My sense is that the best case scenario for plaintiffs is to get their liquidation marks adjusted to zero. And I think that’s a stretch considering the Globex Nymex trading session had been ongoing for 20 hours and 8 minutes before the first zero price print appeared at 2:08 PM on April 20.
More...

Setec Astronomy.
 
This isn’t a first in physically settled energy markets. Negative demand balances are a real thing.

The Edmonton, Canada Propane cash market traded negative in June 2015.

There are instances of hourly electricity prices trading negative.

It is entirely possible that you will see negative natural gas prices here in the US in the foreseeable future.
 
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