Tag: CFTC

Hell Freezes Over: CFTC Finds Trader Guilty of Metals Price Rigging

Hell Freezes Over: CFTC Finds Trader Guilty of Metals Price Rigging

It must have been painfully awkward for the Commodity Futures Trading Commission (CFTC). Last year, Deutsche Bank settled a civil suit involving blatant market rigging and turned over reams of information, including chat logs and voice recordings. The trove contained plenty of damning evidence which had gone overlooked by the CFTC. CFTC investigators supposedly spent 5 years searching for illegal market manipulation, but somehow, managed to find nothing. The cheating became hard to ignore after Deutsche Bank turned over voice recordings and 350,000 pages of documents which revealed bank trading desks being run like the back office of a crooked casino. Here is one of the chat log gems between […]

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Ted Butler: A Remarkable Proposition

Ted Butler: A Remarkable Proposition

A remarkable new paper by a Cornell law professor and CFTC staff counsel suggests that many aspects of high frequency computer trading (HFT) may be, in fact, illegal under various provisions of basic commodity law. Heretofore, it was generally assumed that HFT was legal, but disabused and impacted markets in disruptive manner on occasion. Many, like myself, never looked on HFT favorably, but few have tried to make the legal case against it. Scopino looked at HFT not through the universal perspective of something that’s here to stay and that we must get used to; to looking at it through an interpretation that it might violate existing law. His conclusion appears to be that much of HFT is not properly aligned with existing commodity law.

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Monthly Bank Participation Report Of Precious Metals: April 2014

Monthly Bank Participation Report Of Precious Metals: April 2014

The CFTC releases at the end of each month the futures positions in precious metals of the large banks. At the closing of April 2014 there was no big difference in gold and silver compared to the previous month. Palladium had a notable increase in short positions by US banks. A detailed analysis was provided by Ed Steer in his latest newsletter

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CFTC Believes That Silver Is A Free Market After 5 Year Investigation

| September 26, 2013 | Category: Trading
CFTC Believes That Silver Is A Free Market After 5 Year Investigation

The CFTC announced earlier today that they will close the five-year investigation about silver market manipulation. According to their press release, the organisation has spent 7,000 staff hours of investigation which as produced no evidence of wrongdoing. Ted Butler explains that the CFTC did not touch the key issue: the degree of concentration on the short side of COMEX silver (and gold) held by one or two US banks in the August 2008 Bank Participation Report.

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Gold Short Squeeze

| July 20, 2013 | Category: Trading
Gold Short Squeeze

The CFTC releases its CoT late every Friday afternoon, current to the preceding Tuesday. So the latest available data when this essay was published was Tuesday July 9th’s. And it is truly stunning. Gold-futures speculators held the short side of an astounding 178.9k contracts that day! This was at least a 12.3-year high, the most-extreme gold-futures spec short position by far in gold’s entire secular bull.

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Precious Metals – Historically The Regulator Protected Trading

Precious Metals – Historically The Regulator Protected Trading

Now the gold and silver futures markets are not being used for their original purpose, but are being used to manipulate prices by some entity that does not want to see prices of precious metals move higher. It is widely known that central banks and other major financial institutions have been manipulating Libor, bonds, equities as well as the foreign exchange market. So, it is absolutely plausible that they are manipulating precious metals, in particular gold and silver. What does this mean for investors?

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