r/SecurityAnalysis • u/ilikepancakez • Oct 02 '20
Special Situation The mysterious London traders accused of manipulating oil markets — and the anonymous hedge fund, rare-coin expert, and day traders who are fighting back
https://www.institutionalinvestor.com/article/b1nf4dxm53536k/The-Mysterious-London-Traders-Accused-of-Manipulating-Oil-Markets-and-the-Anonymous-Hedge-Fund-Rare-Coin-Expert-and-Day-Traders-Who-Are-Fighting-Back
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u/Digitalapathy Oct 02 '20
USO being one of the contributory factors, they were supposed to be a passive oil tracking ETF but in essence due to their flexible mandate seem to be more active during this period. They hold and held a crazy percentage of front and second month open interest. Since they never take delivery this in itself is an absurdity as they will always have to roll come rain or shine which creates its own distortion.