The chaos of the negative oil price gave the market a lesson

Source: Taiwan Economic Daily

Economic Daily News

In May, the second trading day of Western Western (WTI) crude oil futures, the negative oil price in the history of futures contracts appeared in history. The settlement of the day was set to the amazing price of $ 37 per barrel.The negative oil prices and a single -day decline in the previous one have been as high as 306%. The speculators who have made more or speculation in the futures market are also a number of crude oil ETF commodities investors.

Looking back on the day, ETN, the third largest crude oil in the world -iPath B series S & P Goghgn Crude Oil Index (OIL), fell from $ 4.01 to $ 1.88, and announced on April 22The impact was greater, and Proshares twice the stock price of Dorburg Etf (UCO) from Dorburg Oil (UCO) fell from $ 33.75 to US $ 13.11, and a single -day decrease of 61.1%.Show negative value and liquidate.This kind of crude oil ETF goods are almost overwhelming, showing that many investors, some professional investment institutions and product publishers are not sufficiently understanding and preparing for the financial goods.

Specifically, the lowest price of past investors' habit of futures is only 0 yuan, so that when the Chicago Commodity Exchange (CME) Western Crude Oil Futures appeared negative, the investor could not respond, and it failed to stop the position immediately.Extremely amazing.Some investors have been forced to cut off the deposit maintenance rate because they have not stopped damage in real time, which has a low maintenance rate of the deposit, which has been forced to cut off the system of futures.Among them, the worst thing is that Bank of China ’s oil futures derivative wealth wealth management commodity crude oil treasure, because it failed to transfer the May’ s crude oil futures in time, the investor after the settlement price not only paid the light principal, but also had to pay back.The price difference is strange to the bank.Disputes such as so on are still incidents that many investors have reported to futures vendors from all over the world.

After this campaign, major crude oil ETFs in the world have launched corresponding response measures in order to maintain the most chips when international oil prices have plummeted or negative oil prices, and prevent the incident of crude oil -like treasures from being repeated.At present, the international mainstream approach can be roughly divided into three directions. First, under the total value of the equity, multiple shares merged for reverse division and reduce circulation. This can increase the net value per share.It is the risk of the risk of negative value and huge volatility in the near month to avoid the risk of negative value and huge fluctuations in recent months; the third is to increase the maintenance of the margin to a reasonable level to ensure the safety of transactions, so it temporarily reduce the exposure water level.Of course, there are also hybrid practices.

For example, UCO announced on April 21 to reverse the division, directly with 25 shares, avoid liquidation to the market, and transfer the futures parts to September and December.─ Betapro Crude Oil 2x Daily Bull (Hou) announced on April 22 that the temporary exposure risk was doubled to reduce volatility risk; the world's largest crude oil ETF -United States Oil Fund LP (USO)On the 21st, the monthly futures contract from a decentralized to the warehouse to June, July, and August, and then adopted an 8 -share merged into 1 reverse segmentation to increase the net value per share, and then transferred the warehouse again.

However, such adjustments have caused new problems.For example, the reverse segmentation increases the price, attracting investors to enter the market again, and if investors chase the price because they do not understand the price of the price, they will cause the speculative style to be even more.People are injured; as for the proportion of transfers to the far -month contract or the proportion of risk exposure, it is a way to reduce fluctuations and control risks to protect net worth.However, when the price of crude oil futures rebounded in recent months, the ETF from the long -term to Yuanyue could not fully respond to the rise and fall, so that investors could not enjoy the benefits of the oil price rebound, and the investment dispute was resurrected.However, in this very violent period of fluctuations in oil prices, the issuer has brought out internal risk measures in the issuance of the issuance terms. It has not yet lost its reasonable operation. At present, there is no supervisory agency in the world.

In summary, even if the oil price has been rebounded significantly in the near future, the epidemic of the new crown pneumonia is still raging in various places, and the global economy responds to normal activity time.The characteristics of financial products have a deeper recognition.At present, the only consolation is that after the major ETFs transferred to the long month, the WTI crude oil futures expired in June have fallen to 270,000 in early May, which is far lower than 630,000 in the same period of the previous month.In the mouth, the probability of negative oil price that kills more before the delivery has fallen this month.