The whole MF thing is very weird and doesn't make any sense -- missing half-billions -- so the situation is ripe for speculation in the absence of tangible evidence of anything.
This does seem like a clue. Maybe MF's raise detere -- and it had one that was more than being a FCM -- was to provide liquidity with smoke and mirrors. I certainly believe there were carrying water for the Treasury and laundering "stimulus" money for Democrats.
ping
If this reading is correct you will likely see the biggest impact in the commodities futures markets. Let’s see if they sell off big Monday. It might also cause a short squeeze in stocks if margin is heavier on the short side. The effect on ETF’s is harder to tell.
Also watch out what happens with some of the closed-end funds that use leverage. If they get margin calls they might be forced to liquidate positions to get back to 100% equity. That could cause a double-whammy: Losses on sales and lower payouts on leveraged interest-earned makes these funds less attractive.
One stock to watch is AGNC. Its approach is to leverage Agency paper 7:1. If they are required to reduce leverage the stock could hit big (I am a financial adviser and I am not recommending anything long or short, just trying to point out a possible risk to this equity).
And here I thought we were mixing SHTF scenarios, where a coronal mass ejection (CME) impacted the financial markets somehow (other than the obvious incineration potential).
bump...
Lots of things happening over the weekend.