Tuesday, May 25, 2010

HOT: BP Being Put on "Clearport Only" Status

EconomicPolicyJournal.com has learned that non-BP energy traders are beginning to put BP energy traders on  "Clearport only" status. Translated: Traders are nervous about BP's ability to pay. They are no longer willing to extend credit for bilateral derivatives transactions to BP; all trades must be submitted to the Chicago Mercantie Exchange for clearing. They don't want BP credit risk.

Also, EPJ has learned that BP is calling in any margin on existing bilateral deals in which they are ahead. Looks like a bit of a cash hoard move, one trader tells us.

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