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

Discussion in 'Retail Brokers' started by CALLumbus, Dec 28, 2020.

  1. JSOP

    JSOP

    It's the same lawyer that launched the same type of lawsuits against TDA earlier https://www.elitetrader.com/et/threads/lawsuit-again-td-ameritrade-tos-getting-it-again.352818/ because some investors (more like gamblers) decided to trade something that they had no idea about, got burned by the -ve prices, instead of accepting the losses decided to blame the brokers that they traded with after being convinced by this ambulance-chasing lawyer that there is a chance. She doesn't dare to go after CME or the CFTC who were supposed to issue guidance on the handling of the negative trading prices of futures of course and decides instead to pick on discount brokerages thinking it can force a settlement or punitive damages from a quick win. Hang in there, AMP, hang in there! Don't give in!

    Good luck!! They are going to lose and the investors are going to double lose, first from their trading, the second time in the court. The only winner here is this lawyer.
     
    Last edited: Dec 28, 2020
    #21     Dec 28, 2020
    They and CALLumbus like this.
  2. JSOP

    JSOP

    And they blame the broker's platform for not allowing them to liquidate. LOL Here is the ET thread where some traders actually went in and added onto their long positions when the price was tanking thinking it can score a killing and then were completely clueless when the price actually went negative on April 20th.

    https://www.elitetrader.com/et/threads/crude-oil.342757/page-17#post-5068345

    Dunno if it's the same traders in that thread that are suing... I blame the lawyer. She worked on them that's for sure.
     
    Last edited: Dec 28, 2020
    #22     Dec 28, 2020
    CALLumbus and comagnum like this.
  3. JSOP

    JSOP

    Ambulance chasers indeed. Couldn't agree with you more.
     
    #23     Dec 28, 2020
  4. ph1l

    ph1l

    https://en.wikipedia.org/wiki/Ambulance_chasing
     
    #24     Dec 28, 2020
    CALLumbus likes this.
  5. JSOP

    JSOP

    You can't take physical delivery on that commodity unless you are JP Morgan Chase. And JP Morgan Chase had to stop because it was too expensive for them.
     
    Last edited: Dec 28, 2020
    #25     Dec 28, 2020
    OptionsOptionsOptions likes this.
  6. bone

    bone

    LOL, that’s why the market collapsed in the first place. The Commercials weren’t buying jack shit squat in the May contract - the long squeeze on April 20th was entirely stupid Spec accounts with a dozen brilliant ones.

     
    #26     Dec 28, 2020
    OptionsOptionsOptions likes this.
  7. JSOP

    JSOP

    Considering it's not even the first class-action lawsuit for the same reason against discount brokers and it's from the same lawyer. https://www.elitetrader.com/et/threads/lawsuit-again-td-ameritrade-tos-getting-it-again.352818/
     
    Last edited: Dec 29, 2020
    #27     Dec 29, 2020
  8. I participated in this type of class-action lawsuit once; at the end, they sent me a check for $23 bucks; it was not worth my time.
     
    #28     Dec 29, 2020
    MarkBrown likes this.
  9. MarkBrown

    MarkBrown

    someone gave YOU cookies ! might wanna check those for ex-lax if i were you lol
     
    #29     Dec 29, 2020
    userque likes this.
  10. AMP_Futures

    AMP_Futures ET Sponsor

    Hello all...here is some quick info.
    1. All Financial losses due to these claimants trades were realized by AMP the same day (on settlement). No effect on our operations.
    2. We have deeply researched this scenario and have provided all the accurate trade details to all the claimants and regulators. We will provide the same in court, if not dismissed.
    3. All of these claimants were in CME E-Mini Crude Oil Futures, not Full Size physically delivered Crude contracts. They were NOT deliverable contracts, they are cash settled...which allows the trader to speculate (hold contract into expiration without the risk of delivery). Then you can see what happened to the market below....
    AMP does NOT provide any trade advice or recommendations. These trades were purely the decisions of the claimants and it was absolutely their right to hold the contracts into expiration (cash settlement).

    CME - (QM) E-mini Crude Oil Chart - 1 min bar - 1st negative price (-0.475) April 20 2020 at 1:08pm CST (63 Contracts Traded)
    [​IMG]

    CME - (QM) E-mini Crude Oil Chart - 1 min bar - 2nd negative prices (-4.425) April 20 2020 at
    1:14 pm CST (2 Contracts Traded)
    [​IMG]

    CME - (QM) E-mini Crude Oil Chart - 1 min bar - 3rd negative prices (-7.000) April 20 2020 at
    1:17 pm CST (10 Contracts Traded)
    [​IMG]

    CME - (QM) E-mini Crude Oil Chart - 1 min bar - 4th negative prices (-8.925) April 20 2020 at
    1:21 pm CST (6 Contracts Traded)
    [​IMG]

    CME - (QM) E-mini Crude Oil Chart - 1 min bar - 5th negative prices (-28.475) April 20 2020 at 1:27 pm CST (1 Contract Traded)
    [​IMG]

    CME - (QM) E-mini Crude Oil Chart - 1 min bar - Final negative prices (-37.175) April 20 2020 at 1:28 pm CST (expired at 1:30pm CST) (1 Contract Traded)
    * Final CME Exchange Settlement Price was -37.62 - processed on Statements.

    [​IMG]

    The above market action is exactly what we explained to our customers

    From what we experienced, when Crude Oil (CL) May 2020 Contract - Traded Negative for the 1st time in History...that the market conditions are not normal once prices traded negative. The orders we researched for our customers, were either REJECTED by CME due to Velocity Logic Circuit Breaker or were REJECTED due to not safe market conditions > NO BID - NO OFFER.

    Here is the link to CME E-Mini Crude Oil Futures - Contract Specs:
    https://www.cmegroup.com/trading/energy/crude-oil/emini-crude-oil_contract_specifications.html

    For more info on NYMEX WTI Crude Contract Trading on and around April 20, 2020, you can read the CFTC Interim Report: https://www.cftc.gov/PressRoom/PressReleases/8315-20
     
    Last edited: Dec 29, 2020
    #30     Dec 29, 2020
    shuraver, Cabin111, JSOP and 4 others like this.