Loading ...We could argue this one back and forth for ages and until someone ‘opens’ the scums books, we will never know. Fwiw I am in the camp they never cover shorts, to any serious degree, as the selling is just so constant and large, there is no way they can cover back, without massive rallies.
Same as I do not believe JPM have a physical long position. Yes on odd occasions u could cause a waterfall decline and buy into it, to cover shorts or even go long. with minimal price impact…but that only works very rarely….if there are more buyers then sellers, then prices rise etc over the long run.
I also think they hide the monster short in London Forwards, as there is no published OI for them and Lines of Credit are how the margins work, so the Fed would have with say JPM, effectively unlimited credit. What we see on Crimex OI is just what they want to show us.