Should Bank of China crude oil be blamed for losing money to the bank?
“I already knew that I had to reverse the bank’s money and it was better to go stock speculation. There is also a limit in the stock market.”Investor Zhang Ming (pseudonym) smiled bitterly at Sauna and Yewang’s resumption of Bank of China’s crude oil treasure negative liquidation.On April 20, local time, the settlement price of futures delivered by West Texas Light Crude Oil (WTI) in May closed at minus 37 per barrel.63 US dollars, for the first time fell into a negative transaction.Investors have witnessed the history once again in the first few meltdowns in US stocks.This time, the investors of BOC Crude Oil “were very hurt”.According to the announcement of the Bank of China on April 22, the US crude oil contract for Crude Oil Products follows -37.The official settlement price of USD 63 / barrel is priced.As soon as the news came out, many investors weighed in and acquired nearly 300%.This means that investors have to find bank money after losing their principal.At present, investor dissatisfaction is mainly concentrated in the agreement that the good margin fell to 20% strong level, why not?Stop trading at ten o’clock in the evening, shouldn’t it be a shift at ten o’clock?Why is the delivery price based on the official settlement price?In response to the sauna, Bank of China customer service said at night.com that after the trading time, it cannot be liquidated. Stopping the transaction does not mean shifting the position. The delivery price refers to the official settlement price of the futures contract of the day.Regarding investors’ doubts about the late move time, an executive of a futures research institute said, “This is just being closed and hanging.”On the evening of April 22, the Bank of China stated that for crude oil products, when the market price is not negative, the long position will not trigger a forced liquidation.For those who have determined to enter the position shift or expired rolling difference processing, the termination processing will be completed for the customer at the settlement price, no longer pay attention to the market, strong level.Do you owe the bank money after losing the principal?Unexpectedly, a loss of 250% of investors said that it is better to go stock trading. “You can lose so much in 7 days, I really did not expect it.”Investor Zhang Ming told Sauna and Yewang.”I already knew that I had to reverse the bank’s money and it was better to go stock speculation. There is also a limit in the stock market.”Zhang Ming is an investor in BOC crude oil treasure.”On April 16, he spent 5,000 principals on BOC crude oil treasure. Because the May contract of American Petroleum was negative, the principal was owed to the bank after the loss of 7800 yuan, and a total of 1 was invested.280,000 yuan, the highest range exceeds 250%.On April 22, a text message sent by the Bank of China to Crude Oil customers stated: After careful confirmation by the Bank, on April 20, US time, the WTI crude oil May futures contract CME official settlement price was -37.USD 63 / barrel is the effective price.According to the “Bank of China Co., Ltd. Financial Market Personal Product Agreement” signed by the customer and our bank, the US crude oil contract of our crude oil product has been rolled or moved with reference to the CME official settlement price.Clients with long positions are requested to make up for the payment in time according to the profit and loss of closing the position.At the same time, the Bank of China suspended the new open trades of customers Crude Oil (including US oil, British oil), the reason is mentioned in the text message, it is “for the current market risk and delivery risk”, and the Bank of China also said that the closed positions of customers who hold positions are notInfringe.Zhang Ming’s experience is staged on the long-term clients of Crude Oil.Since the beginning of this year, the price of crude oil has been steadily falling, and more and more people have participated in the crude oil bargain-hunting as bulls.”Now the price is so low, it will definitely go up,” Cui Xiang (pseudonym) recalled to reporters his mentality of buying at the time.He bought 40,000 crude oil treasures and currently owes the bank 120,000, a total decrease of 160,000.The amount of some investors to cover losses is huge.According to a statement provided by an investor to the reporter, the investor opened the position with a principal of 270,000 yuan and owed 63 to the bank.280,000 yuan, overall 90.280,000 yuan, expected to exceed 300%.BOC launched the “Crude Oil” product in January 2018 to provide domestic individual customers with trading services linked to overseas crude oil futures. Customers make their own trading decisions.Individual customers conducting “Crude Oil Treasure” are required to submit 100% margin, sustainable leveraged transactions.”I saw that this product does not provide leverage. I thought that I would get the most out of the principal. I really didn’t expect to lose money after the negative oil price,” said Cui Xiang.When the US Air Force plunged in March, this transaction was pushed on the WeChat public account of a branch of Bank of China. According to screenshots provided by Weibo netizens, the promotional information of BOC Crude Oil said: “Crude oil is cheaper than water.”Transactions”, the evaluation in the publicity said that if investors shorted 100 barrels of US crude oil contracts on March 5 and closed positions on March 9, the five-day time rate of return would exceed 37%.This investment is called “black gold” investment.However, the reporter found the WeChat official account and found that it published the so-called “crude oil is cheaper than water, BOC takes you to trade” promotion of crude oil 26 days ago, but currently clicks to find that the article has been deleted by the publisher.The agreement said that the good margin fell to 20% strong, why not?Stop trading at ten o’clock in the evening, shouldn’t it be a shift at ten o’clock?Why is the delivery price according to the official settlement price?”BOC’s notice triggered three consecutive questions from investors.On the evening of April 20, the U.S. crude oil futures price May WTI contract fell to -37 a barrel a day before expiration.63 US dollars, closing in negative value for the first time in history.”The trading system was closed at night, and I found it impossible to trade after trying at 22:15. I thought that the Bank of China would force liquidation when the margin mentioned in the agreement fell to 20%, but I did not expect to watch and watch all the way down to a negative value.The result was a loss of nearly 300%.”Zhang Ming said.Crude oil products are linked to overseas crude oil futures, similar to the operation of futures trading, according to the agreement, the contract will be terminated on the contract termination processing date, in accordance with the customer’s pre-specified method, to carry out the position or gradually crush the difference.Among them, the position shift refers to all current contracts held by the closing client; while the opening margin refers to all current contracts held by the closing client only.Cui Xiang said, why didn’t the position shift and month change at ten o’clock in the evening?He believes that if BOC moves positions according to trading hours, investor losses can be reduced.In response to the question of why the position was not closed, the sauna and Yewang called BOC customer service. The customer service replied that if BOC crude oil is the last trading day of the contract, the trading time is 9: 00-22: 00, and the bank will not be more than 22:00A forced liquidation operation was conducted, and the margin fell below 20% after 10 o’clock last night.The price for the spread and settlement is set at -37.63 USD / barrel, customer service refuses to weigh, stop trading at 10 pm does not mean that the position will be moved at 10 pm, the delivery price refers to the official settlement price of the exchange contract on the day, the average price of 2: 28-2: 30 in Beijing timeSettlement was carried out, but the specific time for crude oil treasure to move positions was not registered.”Can I still do this?”Investors said after seeing the response and so on.Some investors said on Weibo that he believes that this product is a high-risk product after 22:00 on April 20, and there is a risk of total loss of principal and even supplement of margin. Bank of China did not fully disclose risk to customers beforehand.Online testing of risk-taking ability of customers.Another Weibo netizen said that the battle had been promoted by Crude Oil Po, but found that he did not dare to start with an unclear description of the risks and “escaped.”Another futures practitioner said that from a rule point of view, if the investor does not close the position during trading hours, that is, it is replaced by accepting to close the position at the settlement price of the day.Regarding the issue of liquidation, the Bank of China stated that for crude oil products, when the market price is not negative, the long position will not trigger a forced liquidation.For those who have determined to enter the position shift or expired rolling difference processing, the termination processing will be completed for the customer at the settlement price, no longer pay attention to the market, strong level.Among the three major banks, the latest move of the Bank of China Bank of China’s crude oil treasure product design flaws?In the market, in addition to the Bank of China launched the crude oil treasure business, ICBC and CCB also launched similar products.What makes Crude Oil’s clients “big head” is that the time for other additional banks to move their positions is earlier than that of the Bank of China, which avoids the situation of “finding bank money”.Because of this, “Why move to the last time?””An important point that led investors to question the Bank’s product design capabilities.Crude Oil’s trading strategy is that investors can only buy a near-month contract, that is, the May contract of American Oil is delivered on April 21, 2020, and investors cannot directly buy the June contract of American Oil until April 20, 2020.You can only purchase the May oil contract for May first. After the May contract is settled, investors can choose to move their positions to the June contract for May oil.The time when Crude Oil shifted its position was to shift the position in the US market on the penultimate day of the last trading day, and the huge changes in the market on the evening of April 20th led to the replacement of customers.According to the situation of the crude oil futures transfer of major banks announced by Kaifeng Investment, from April 8 to April 14, the world’s largest crude oil ETF fund USO US oil May contract was completed.The account crude oil WTI05 contract is shifted, and the closing price is basically between 21-20 US dollars / barrel.On April 20, the Bank of China Crude Oil Bao WTI05 contract moved, and April 21 was the last trading day of WTI05.Judging from the time of shifting positions, the shifting time of Bank of China is later than that of ICBC and CCB.”They’re the latest at home. Isn’t this close the door?”A senior researcher executive told reporters.It turns out that when the market for crude oil futures is near high and low, it is easy to move positions. Now the market has become near low and high, and it is very stressful to move positions.”In the past month, everyone’s bottom-cutting behavior has been very concentrated, and positions are very strong. The amount of positions has been enlarged several times at a time, and the position shift is very small.”If you don’t come out in time, you will be stared by the bear.”For the Bank of China to close the position at the last moment for the month, the executive said:” In the case of a relatively large market change, it is impossible to hedge completely, or it is possible that the slippage is too large. “”Once the market price drops sharply, when the unit price of U.S. oil is $ 20, 200,000 orders are placed, and the final deal may be 50,000. If the remaining 150,000 is too late to hedge, it may be that the price you soldThe actual value is much lower, basically it is possible to lose a lot of money in this very short arrangement.It has something to do with the market capacity, because there is no such a large counterparty to deal with, and it is impossible to close the position.Said the executive.Wang Deyi, a lawyer from the search for real-life law firms, said whether the Bank of China is opposed to having the corresponding transaction rules published or informing customers that under the circumstances of legal and effective transactions, investors can accept the reality of willingness to gamble and lose.However, he believes that whether it is linked to the US crude oil trading varieties or British crude oil trading varieties, there is the possibility of not obtaining a legal license for domestic trading.This trading system is essentially a market maker system for betting with customers.Bank of China Crude Oil said in the product description that it continues to trade, so he believes that the trading product and trading rules are not essentially balanced with futures.The highest foreign exchange transaction in the year must obtain the business license of the State Council or the China Securities Regulatory Commission, otherwise it is illegal and invalid.Chen Leibo, an attorney at Jingshi Law Firm, believes that the first step in deciding whether a bank is liable is the identification of a qualified investor, and whether BOC has really conducted an audit. As far as there are a large number of small investors in Crude Oil, there is a situation where it is not recognized.The second is whether or not to give investors a risk warning of the trading rules. The May WTI oil futures contract expires on Tuesday (April 21). Buyers must sell or actually deliver in time. Does this remind investors in advanceThe third question is whether the Bank of China is a broker or a futures investor, whether it is to follow the investor’s instructions to buy and sell, or whether the Bank of China independently judges to buy and sell, and according to the agreement provided by the investor, the agreement shows that the possible lossIn the case of gold, although it was written that investors may need to supplement the margin, there is no hint that there will be a more serious risk than loss of principal in a transaction. It may be that BOC itself did not expect the futures price to be negative.The fourth question is whether the Bank of China’s investment in US futures products through the so-called crude oil treasure needs to be approved by the futures regulatory agency, and whether it needs to be filed or approved by the bank regulatory agency requires special attention.Sauna, Ye Wang Zhang Shuxin editor Li Weijia Xu Chao proofreading Jia Ning