Tag - Manipulation

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Thursday, April 5 2018

US Gold & Silver Futures Markets: "Easy" Targets

Following news of the charging of five precious metals traders and three banks in January, Commodities Futures Trading Commission and Department of Justice documents reveal a global criminal cabal of 16 traders operating in at least four major financial institutions between 2008 and 2015 to defraud COMEX gold and silver futures markets.

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Sunday, March 18 2018

Central banks manipulating & suppressing gold prices

Central banks have a long and colorful history of manipulating the gold price. This manipulation has taken many shapes and forms over the years. It also shouldn't be surprising that central banks intervene in the gold market given that they also intervene in all other financial markets. It would be naive to think that the gold market should be any different.

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Monday, March 5 2018

It's Not A "Conspiracy Theory": Here's How Central Banks Actively Suppress The Price Of Gold

How central banks' use gold lending to manipulate their balance sheets, and also to manipulate the broader market for precious metals by sheer dint of their size, and willingness to buy and sell without any consideration for the price.

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Monday, January 29 2018

U.S. authorities charge three banks, eight individuals in futures 'spoofing' probe

Deutsche Bank and UBS have agreed to pay $30 million and $15 million respectively to settle the civil charges in the case, while HSBC will pay $1.6 million, the CFTC said.

All three banks received reduced penalties from the CFTC for providing significant assistance in the investigations, which relate to activity that dates back as far as 2008. UBS self-reported the alleged misconduct by its traders to the regulator, the CFTC said.

The alleged activity saw manipulation of a range of precious metals contracts, including in gold, silver, platinum or palladium futures, as well as in S&P E-mini futures.

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CFTC Files Eight Anti-Spoofing Enforcement Actions against Three Banks (Deutsche Bank, HSBC & UBS)

DB, HSBC & UBS all guilty of manipulating PM prices.

What has been claimed & denied by many has now become truth....

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Friday, January 26 2018

Macro-Trend Changes For Gold in 2018 and Beyond

German philosopher Arthur Schopenhauer said that “All truth passes through three stages: First it is ridiculed. Second, it is violently opposed. Third, it is accepted as self-evident.”

The manipulation of the gold price has moved close to the third stage, as recent class action lawsuits for over $1 billion have been filed in New York and Toronto against six major bullion banks and have been approved to proceed. Another class action lawsuit is being formed in London.

These lawsuits will have a major impact on gold as the paper price diverges from the physical price.

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Saturday, November 11 2017

Mysterious Gold Trades of 4 Million Ounces Spur Price Plunge

Trades that moved about 4 million ounces of gold in a matter of minutes awakened the precious metal from its slumber.

After 11:10 a.m. on the Comex in New York almost 40,000 contracts, each representing 100 ounces of the metal, traded in a span of 10 minutes. That triggered a sell-off, sending prices down as much as 1.1 percent.

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Saturday, September 23 2017

Former UBS gold trader charged with spoofing

Andre Flotron, formerly a senior precious metals trader with UBS, was arrested in New Jersey last week by the US Department of Justice (DoJ). The DoJ has charged Flotron with spoofing gold futures on the CME (COMEX) from July 2008 until November 2013.

A junior trader, who agreed to cooperate with the US government in return for avoiding criminal prosecution, told the DoJ that Flotron demonstrated how to spoof gold futures in July 2008 as preparation for the witness moving to the UBS precious metals desk in Singapore.

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Thursday, September 14 2017

Ex-UBS Trader Accused by U.S. of Manipulating Metals Prices

A former trader at UBS Group AG was charged with conspiracy and fraud over his suspected role in manipulating the price of precious metals.

Andre Flotron, who worked at the bank in Switzerland and Stamford, Connecticut, is the second person publicly charged in the U.S. investigation into the fixing of gold, silver, platinum and palladium prices. Flotron, a Swiss citizen, was arrested while visiting his girlfriend in New Jersey. He was charged with conspiracy, wire fraud, commodities fraud and spoofing. He faces as many as 25 years in prison on the most serious charge.

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Friday, September 8 2017

Shorts on Fire

Now I must ponder/wonder how those people who sold million/billions short when gold was breaking out.?? It happened twice where it looked like abject manipulation on Aug 18th & Aug 25th - both Fridays - both at similar times of the day.

I must ask them or the entities they represented (as no sane trader or poor person would be worth asking)

Did you get value for your money when you blew it away?

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Thursday, August 3 2017

What Is It About 1906ET That Spooks Precious Metals 'Traders'?

However, it was the precious metals 'markets' that went a little turbo. At 1906ET, Silver futures flash-smashed higher, running the day's high-stops, before plunging back to earth...

This would normally be shrugged off as just another example of the utter farce that global capital markets have become. However, a glance back in recent history at the silver market's most recent chaos moment - on July 6th - and a 'funny' thing stood out!!!

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Saturday, July 8 2017

A Tale of Two Gold Markets

The answer is that there really is no true market for gold, just a rigged game consisting of physical gold and paper gold trading side by side as if they were one and the same.

In some ways, this doesn’t matter, because regulators have shown no appetite to enforce the law. The message to manipulators is that this is a big boy’s market and players can do whatever they want as long as it’s not too blatant.

More broadly, where does the price of gold go from here?

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Another Bullion Flash Crash Is Testing Traders

“All fundamental factors aside, it does tremendous technical damage to the market,”

“There should be some effort to study this and come to some solution that will make for a more orderly trading pattern. This type of activity is not good for a fair playing field.”

The precious metal struggled to bounce back from its low on June 26 because the transaction pushed the price below the 200-day moving average, triggering automated sell orders set by algorithmic traders, thereby sustaining the slump.

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There Is No Such Thing As A Bad Tick

It is my understanding the CME ruled yesterday’s silver flash crash excessive, and repriced all trades below $15.45 to this more fair price. Well ironically enough, although last night silver bounced back to $16, this morning in the aftermath of the flash crash, silver traded down below last night’s adjusted low, proving once again, there is no such thing as a bad tick.

But this doesn’t explain why someone would choose to sell a whack of silver futures at 6pm. It wasn’t like it was a badly traded 100 lot. More than 6,000 futures traded. Why on earth would anyone need to sell almost half a billion dollars of silver at the most illiquid time of the day? It almost makes me sympathetic to the tinfoil hat wearing precious metal bulls who are convinced governments are nefariously conspiring to keep gold and silver down.

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Silver Prices Bounce Higher After Futures Manipulated 7% Lower In Minute

Many analysts are calling the flash crash a ‘trading error’ or fat finger.’ However, this is somewhat lazy and ignores a few pertinent facts and context.

The aggressive selling had all the hallmarks of market manipulation as $450 million worth of silver futures were sold in a minute. An entity appears to have wanted silver lower and the massive sell order achieved that goal.

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CME Stays Silent on Cause of COMEX Silver Price Glitch

Silver futures prices on the COMEX futures trading platform briefly plummeted at approximately 7:06am Singapore time yesterday, with the price for the front month (most active) September silver contract falling from a US$16.06 quote down to a low of US$14.34 all within a 1 minute interval. The futures price then recovered nearly all of its losses in the subsequent 2-3 minute period. High to low, this COMEX silver futures contract saw its price fall by just over 10.7%, before rebounding nearly 11%.

During this time when the COMEX price crashed, there was nothing fundamentally happening in the wider financial markets, or indeed in the physical silver market, to justify these price gyrations in COMEX silver futures prices. Which all goes to show that the COMEX ‘paper’ futures silver prices is completely detached from the physical silver market, and that COMEX silver futures prices have no anchoring in the real silver market.

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Friday, July 7 2017

Flash Crash

Silver dropped from 16.05 down to 14.82 before rebounding to 15.89

Gold dropped 5 - platinum down 11

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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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Monday, June 5 2017

Former Deutsche Bank Trader Pleads Guilty to Spoofing Precious Metals Futures

David Liew, formerly a junior precious metals trader with Deutsche Bank in Singapore, has been permanently banned from trading in CFTC-regulated markets. In court in Chicago last week, Liew pled guilty to charges of fraud for his role in spoofing and manipulating precious metals futures markets - gold, silver, platinum and palladium - between December 2009 and February 2012. His crimes included front-running client orders and trying to trip stop loss orders left with the bank.

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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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