These reports display the net positions
for the following participants: Producer-Merchant-Processor-User, Swap Dealers, Managed Money and Other Reportables.
Hedge funds raised their net position
in US gasoline by 10 million barrels and in New York heating oil by 11 million barrels, reversing an earlier fall in net positions
Hedge funds' net positions
that profit from a stronger greenback reached the highest level since February in the week through Oct.
As described above, the clearing banks receive instructions from FICC to settle dealers' net positions
, where a net position
is the difference between the value of repos and the value of reverse repos that a dealer has traded for a particular collateral class.
Firms are generally allowed to track their positions in a security from certain trading operations or trading desks separately from other positions maintained at the firm through the use of an "aggregation unit." But in determining the net positions
of aggregation units, firms cannot include the securities positions of a non-U.S.-broker-dealer affiliate.In addition, FINRA requires firms, with some exceptions, to regularly report their total "short" positions in all customer and proprietary firm accounts in equity securities.
As a result, it is expected that positive net positions
increase the risk of the company (hypothesis 1c).
accounting rules allow for calculations of net positions
but international standards used in Europe and elsewhere require gross positions, which can be much larger.
"A decline in total turnover was due to profit-taking by some punters but at the closing of market, they left for homes with net positions
", he said.
Microsoft's team found others were using spreadsheets to calculate CLS net positions
and reconcile FX activity manually.
A Bloomberg article questions the protection of an endless chain of hedging: "The banks say their net positions
are smaller because they purchase swaps to offset ones they're selling to other companies," the article quotes Frederick Cannon, director of research at New York-based investment bank Keefe, Bruyette & Woods Inc., adding, "With banks on both sides of the Atlantic using derivatives to hedge, potential losses aren't being reduced." Five US banks, exposed to $45 billion of debt from Greece, Portugal, Italy, Spain and Ireland, expect European governments to step in with rescue plans as was the case when Belgium and France assisted Dexia in October.
"Platinum continued the decrease in net positions
from last week as shorts increase while palladium did the opposite with net positions
increase as shorts decrease," HSBC said.