Tag Archives: Trafigura

Who Squeezed the JKM February 2021 swap ? “The Economics of Commodity Market Manipulation”

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The Economics of Commodity Market Manipulation
During February the position of a long arbitrage JKM holder is 7X to 8X times its delivery equivalent cost to Japan. You clearly see that blue line spiked above the pink line. This is how we detect the presence of a manipulation in this benchmark. Continue reading →

Traders or Commodity Finance Banks part XXIII: Did Capital One run into a Commodity Pre-Pay Wall ?

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“Why was Capital one spec’ing long crude anyway” asked a trader ?

He noted that they cannot really call it a “hedge“ as they are directly hurt by falling prices…

-Capital One is not registered as a swap dealer, nor is a major swap participant with the CFTC. -How in the course of normal lending can they be long the equivalent of 50,000 NYMEX contracts. Continue reading →