Tag - Manipulation

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Tuesday, June 6 2017

Chats by Ex-Deutsche Bank Metals Trader Reveal Spoofing Tricks from the Master

In his court plea, Liew described working with others at his own bank and at two other operations. He refers to “The Legend,” without naming him, at another unidentified global bank. Many details are cloaked. Liew himself is described as a trader for Bank A, which a person familiar with the situation said is Deutsche Bank AG.

According to the documents, at least two senior colleagues taught Liew how small orders could be placed and then quickly pulled, pushing prices in a direction to benefit traders with client orders to fill. Within a couple years, he was teaching newer traders to do the same. In all, according to the filings, he attempted to move prices on Chicago’s CME more than 300 times before he left.

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Friday, June 2 2017

Deutsche Bank Trader Admits To Rigging Precious Metals Markets

Defendant LIEW's employer, Bank A, was one of the largest global banking and financial services companies in the world. Bank A's primary precious metals trading desks were located in the United States, the United Kingdom, and the Asia-Pacific region.

Defendant LIEW and other precious metals traders, including traders at Bank A, engaged in a conspiracy to commit wire fraud affecting a financial institution and spoofing, in the trading of precious metals futures contracts traded on the CME.

Defendant LIEW placed, and conspired to place, hundreds of orders to buy or to sell precious metals futures contracts that he intended to cancel and not to execute at the time he placed the orders (the "Spoof Orders").

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Ex-Trader Linked to Deutsche Bank Is Aiding U.S. Spoof Probe

A trader who conspired to manipulate futures contracts in precious metals committed those actions while working at Deutsche Bank AG, according to a person familiar with the matter, and he is now cooperating with prosecutors.

The trader, David Liew, pleaded guilty to fraud on Thursday in federal court in Chicago for his role in the spoofing of contracts for gold, silver, platinum and palladium, according to court papers. Along with spoofing which is placing orders without the intent of executing them in an attempt to manipulate the price he also acknowledged front-running customers’ orders.

Liew’s cooperation suggests more headaches for Deutsche Bank and its traders. Liew worked on his own but also with at least three other traders at the bank to coordinate spoofing hundreds of times, practices he said he learned from his co-workers, according to court documents. Liew’s employer is described as Bank A in the plea agreement and identified as Deutsche Bank by the person familiar with the matter.

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Sunday, May 28 2017

The Golden Conspiracy

Is there gold price manipulation going on? Absolutely. There’s no question about it. That’s not just an opinion.

There is statistical evidence piling up to make the case, in addition to anecdotal evidence and forensic evidence. The evidence is very clear, in fact.

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Wednesday, May 3 2017

Banks say gold price-fixing data errors entitle them to do-over

Barclays and three other banks told a New York federal court Monday that they didn't waste its time when requesting a second shot at tossing a case over their alleged conspiracy to manipulate the price of gold, saying investors' use of flawed data in the suit justifies a do-over.

Barclays Bank PLC, HSBC Bank PLC, Societe Generale, and the Bank of Nova Scotia again asked the court for permission to renew their dismissal bid, fighting against investors who say their suit still supports allegations of collusive trading even after admitting the complaint included flawed data analyses.

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Friday, April 28 2017

Silver price manipulation, is regulation putting a stop to it?

Simple economics tells us that markets and prices are driven by demand and supply. Unfortunately, this isn’t always the case in the silver market. However, the threat of new regulations may be putting a stop to some bullion banks from fiddling the London silver benchmark.

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Thursday, April 20 2017

Gold Trading Systems Experience Growing Pains

On the afternoon of April 11, London’s daily gold price benchmark fix took a peculiar turn: It was about $12 under the spot price. The auction appeared to be stuck on a descending escalator from an initial $1,265.75, before fixing at $1,252.90.

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Saturday, April 1 2017

U.S. judge throws out many metals price-fixing claims

A U.S. judge on Tuesday significantly narrowed private litigation accusing several big banks and German chemical giant BASF SE (BASFn.DE) of conspiring to suppress platinum and palladium prices.

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Sunday, February 5 2017

Possible Manipulation of gold and silver prices 1999-2014

Based on documents in the public domain to which we refer below, we consider that there are good grounds to believe that members of six well-known financial services groups combined together to manipulate the outcome of the London Gold Fixing between about 2004 and 2014 and that members of four of those groups combined to manipulate the outcome of the London Silver Fixing between about 1999 and 2014. The effect of this was to create false market prices, in particular by artificially depressing prices after the 3pm (London time) Gold Price Fixing and to increase bid-offer spreads in physical gold, physical silver and their respective derivative instruments. The relevant institutions did this to increase their profits from their own activities in these markets at the expense of other market participants who have therefore suffered loss and damage, probably running into hundreds of millions of pounds in aggregate.

If it can be established that these financial institutions participated in price fixing then we consider that there can be little doubt that they have breached section 2 of the Competition Act 1998 and are liable to pay damages to any other market participant that suffered loss and damage as a result.

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Friday, February 3 2017

JPM Silver Rigging Case Back in Court

US Appeals Court overturns Dismissal in Silver Rigging Case against JPMorgan
The Appeals court rejected Judge Engelmeyer’s claim that the plaintiffs did not prove JPMorgan made “uneconomic bids” in the silver forward’s markets.
New Discovery May Win the Case for against JPMorgan

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Thursday, February 2 2017

U.S. appeals court revives JPMorgan silver futures rigging lawsuits

A U.S. appeals court on Wednesday revived three private antitrust lawsuits accusing JPMorgan Chase & Co of rigging a market for silver futures contracts traded on COMEX.

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Wednesday, January 4 2017

It's War: World's Purest Silver Producer Prepares To Join Class Action Lawsuit Against Bullion Banks For Price Rigging

Now that the cat is out of the bag and Deutsche Bank has agreed to turn over documents implicating other banks in related schemes, major mining companies are preparing lawsuits of their own. Straight-shooting First Majestic Silver CEO Keith Neumeyer, who in 2015 was the first mining company head to issue a public statement on the manipulation of precious metals prices by a small concentration of players, has said that the company’s legal team is closely monitoring the situation

Citing loss of revenue, jobs and shareholder value Neumeyer said in an interview with SGT Report that his company will likely be preparing legal action against the bullion banks involved in the rigging of prices.

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Friday, December 23 2016

Deutsche Bank Settlement: Seasonal Intraday Charts Provide Evidence for Market Manipulation

Deutsche Bank is a defendant in more than 7,000 lawsuits worldwide. In two of them it has recently agreed to settlements and is prepared to pay tens of millions of US dollars in restitution and fines. This includes the settling of lawsuits over gold and silver price manipulation. Associated court proceedings against other financial institutions are still underway.

Apart from Deutsche Bank, several other banks have been sued in New York over manipulation of precious metals prices as well. Due to a lack of direct evidence, the plaintiffs initially presented statistical evidence. Charts that show average intraday price movements have played an important role in this.

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Friday, December 16 2016

They don’t call it the fix for nothing

The Amended Complaint against several major bullion banks wherein it is argued that said banks colluded to manipulate the London Gold Fix was unsealed last week. It is a convincing document, and damning of the Defendants. Most galling is the disclosure of chat transcripts amongst traders, exchanges they surely thought would never see the light of day. Choice examples to follow.

This is a touchy subject amongst gold investors, some of whom believe the price is set in Davos every year, and others who refuse to have anything to do with those who believe the price is set in Davos every year. We are agnostic on the topic, but will say that muscle and its enlistment is a fact of life in all markets. However, one thing we do know, having reviewed the Complaint, is that the organizations the gold mining industry depends upon to market its metal did not have their clients’ best interests in mind. This may still be the case. Perhaps a gold mining company (or two) will read this note and if they do, by the time they are done, they may well think that there may be a better way to get their product into the hands of the people who want it.

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Gold Market Manipulation

It's interesting to note that no one has sent this out as news, Bloomberg, Reuters et al. Yet the documents were released on Dec 6th a day before the silver court documents on Dec 7th.



Also I note that many of the Bloomberg articles referenced in the Gold Manipulation documents have been taken offline.



It appears there is willful collusion to keep the Gold Manipulation Court Case out of the news.



Many thanks to Allan Flynn for bringing these court cases to the public attention.

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Thursday, December 15 2016

Silver Smoking Gun to Stop Dishonest Dealing

Last week ZeroHedge reported on the amended London Silver Fixing Antitrust Litigation which included damaging chat logs provided by Deutsche Bank that reveal collusion between bullion bank traders to “shade”, “blade”, “muscle”, “job”, “spoof” and “snipe” the silver market.

While the amended complaint only provides selected examples from the 350,000 pages of documents and 75 audio tapes that the plaintiffs received as part of the settlement with Deutsche Bank, what has been provided shows cliques of traders who worked together against the interests of their clients.

Below is a network map of these cliques, which shows every trader mentioned in the complaint with the lines indicating who chatted with whom (view the map online here).

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Wednesday, December 14 2016

When Gold Goes Above 1430 we Whack it

As it goes in silver, so it goes in gold. In London at least.

In a bid to have UBS reinstated as a defendant in a London Gold Fix consolidated antitrust lawsuit, plaintiffs documents submitted to a New York Court last week include explosive chat room transcripts of UBS and traders from different banks encouraging each other to “push,” “smack,” and “whack” gold prices.

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Tuesday, December 13 2016

Silver Investing Manipulation: The Truth On A Timeline

For years, Mike Maloney has talked about how precious metals markets were being manipulated and today we have the proof. Deutsche Bank recently settled a lawsuit accusing it of the rigging silver markets. And as part of the settlement, the bank released 350,000 pages of documents and 75 audio tapes.

These documents show there was a silver market “mafia” of big banks including Deutsche, UBS, and HSBC all working together to artificially suppress the price of silver and fleece the general public in the process.

In this video, Mike walks you through the historical silver charts and pinpoints the exact moments bank traders colluded together to rig the markets. The evidence leaves little to doubt. But as you’ll learn, there’s an upside for silver investors who accumulate physical metals.

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Monday, December 12 2016

3, 2, 1, Boom - Silver-Fixing Allegations in a Dozen Chats

A cache of documents from Deutsche Bank AG include what a group of silver investors claim is a “smoking gun”: private electronic chats showing traders from numerous banks conspiring to rig prices from 2007 to 2013, according to a court filing in New York last week.

The bank provided the documents to the investors after settling a lawsuit accusing it of rigging markets in precious-metals. As part of the accord in April, the bank paid $38 million and turned over more than 350,000 pages of documents and 75 audio tapes. The investors now want to use the chats to win permission from a judge to file a new complaint against other banks.

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In Chats, Silver Mafia Traders Flexed Muscle, Drew Blades

The new evidence is derived from 350,000 pages of bank documents and 75 audio tapes handed over by Deutsche Bank as part of the accord. The traders aren’t identified by name in the filings.

The recorded chats sprinkled with “dude,” “bro,’’ and assorted obscenities are a “smoking gun” bolstering claims that traders rigged silver prices, impacting jewelry prices, silver investments and the earnings of mining companies that sell raw materials to refiners, the plaintiffs say. The traders acted against their own clients’ interest, triggering stop-loss orders and front-running customers trades, according to the documents.

They also gave code names to certain techniques, according to the documents, which explain that “blade” meant placing a series of small orders close to each other in price, and “muscle” referred to placing large orders -- usually when they knew the market was illiquid.

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