Another Broker Halts Trading In Gold And Silver Products

Tyler Durden's picture

CMC Markets, a broker out of Australia which offers Contracts For Difference (CFDs), has just formally joined the increasingly larger group headed by (discussed on Saturday) which is now advising customers that gold and silver trading will be prohibited in a month. Specifically, CMC has said that beginning July 29, it will no longer offer nor roll any of its existing gold and silver CFDs. What is curious is that unlike, which advised clients it is halting comparable trading on July 25 as pertains to spot OTC products (XAU and XAG), CMC's halt is impacting gold and silver futures. While we still are not confident we understand precisely what span of products is prohibited by Dodd-Frank, it appears that ever more brokers are interpreting the law loosely enough to where practically all gold and silver products will soon be removed from retail participation. Readers, however, can rest assured that the CFTC, which is urgently delaying any of the Frankendodd provisions that impair Wall Street bottom lines, will not move a finger to address or resolve this issue which will suddenly affect millions of retail investors in the US, and around the world.

From CMC Markets:

h/t Steve

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Rahm's picture

Gold is money, and nothing else.  (and silver)

Ahmeexnal's picture

A pathetic attempt by JPig to try to get off the hook.

This will backfire on them. Instead of a price dump, we shall witness a parabolic wall of voodoo.

While the sheeple may not even hear about this -and if they do they will just stare blankly and proceed to Mickey D's as usual- the smart money knows what's in store, and will buy with both hands.  So will central banks the world over.

And remember, it's gold AND SILVER!


And yes, rumors are correct. Silver will shortly circulate as currency in several countries.

When it does, it will be valued severalfold what the CRIMEX says it's worth today.

That means the next world reserve currency will be...SILVER!!!

Thomas's picture

I have always wanted to see the Parabolic Wall of Voodoo.

As an aside, I have always suspected that many of these vehicles were designed to sop up gold demand into the paper market so that the physical would stay tame. If my theory is correct, that PWV you speak of might just appear now that people are forced into physical.

French Frog's picture

I have to say this is one of those where ZH has got it completely WRONG and it has nothing to do with any Gold-related-possible-whatever.....

As part of moving to their new trading platform, CMC are stopping any monthly and quarterly rolling instruments (futures) and only offering the equivalent cash markets, like a lot of SB UK-based brokers.

This has been known for 6 months and all these instruments have been withdrawn when their current contract had expired (or is about to expire).

No more, no less

AUD's picture

CFD's are not really futures at all, there is no delivery of any commodity.

French Frog's picture

I know; i don't trade CFD with CMC just the cash markets with their SB (Spread Bet) platform;

The point that i was trying to make is that whether it's their CFD or SB platform, they started discontinuing their rolling monthly & quaterly contracts & futures;

This is nothing to do with Gold (as ZH suggested), it's only to do with the rolling out of their new platform and they have been cancelling these instruments for a while now.

So there lol

ViewfromUndertheBridge's picture

Not only is this this ZH post completely false but so is the first one extrapolating from the letter. XAU & XAG will NOT be illegal to trade for US residents come July 15.

This is the CFTC Final Rule Regarding Retail Foreign Exchange Transactions.

In short, to offer forex OTC trading platforms to US resident retail customers a company must register with the CFTC as a Retail Forex Exchange Dealer (RFED). This is a new category and requires strict reporting to increase transparency for retail clients. Information such as the number of participants who made a profit in the last quarter, any pending lawsuits and a warning if the company's remaining capital is approaching the new minimum limit, which is $20 million.

Leverage is limited to 50:1 (2% margin) for major currency pairs and 20:1 (5% margin) for others.

It looks to me as if XAU and XAG are included in the majors (50:1) on the basis that these are Oanda's margins for XAU and XAG and they are listed to be a compliant RFED. The National Futures Association can set refinements within these limits. If you do not know much about OTC forex trading and want to learn the basics the NFA offers a condescending 24 page booklet here:

To see if your OTC forex provider is a compliant RFED you can check here:

These companies would appear not to be compliant, because the CFTC is already suing them under the new rules:

Conclusion...Tyler, love your work but please lift your game.

doesmybuttlookfatinthis's picture

I love Wall of Voodoo!


I feel a hot wind on my shoulder
And the touch of a world that is older
I turn the switch and check the number
I leave it on when in bed I slumber
I hear the rhythms of the music
I buy the product and never use it
I hear the talking of the DJ
Can't understand just what does he say?

I'm on a mexican radio. I'm on a Mexican - whoah - radio

I dial it in and tune the station
They talk about the U.S. inflation
I understand just a little
No comprende, it's a riddle

I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio
I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio

I wish I was in Tijuana
Eating barbequed iguana
I'd take requests on the telephone
I'm on a wavelength far from home
I feel a hot wind on my shoulder
I dial it in from south of the border
I hear the talking of the DJ
Can't understand just what does he say?

I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio
I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio

Radio radio... Radio radio... Radio radio...
I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio
I'm on a mexican radio. I'm on a Mexican, whoa-Oh, radio
Radio radio... What does he say ?

beanieville's picture

Silver is done for.  Going to 20.

beanieville's picture

Now that precious metals are finished, there's always bitcoins:

fiftybagger's picture

Bitcoin Report Volume 8 - FLASHCRASH!


FlyPaper's picture

I don't know how you came up with $20 for silver, but that could happen.  Hope it does, in fact - would be the last great buying opportunity before the inflationary spiral takes off.

ZHer's that Junked this comment - why?  If the Fed allows the economy to soften Silver will be hammered more than Gold.   I'm assuming it will also turn around when QEx starts up.

Dan Norcini has a warning out as of late last week to silver traders that silver will not hold up as well in a depressed economy due to supply-demand issues, which makes sense because of Silver's industrial use.  

This does not change the fundamental "print your way out" for the globe's central banks and governments; it just assumes that the process is not a straight line because of the constant market manipulation and intervention.

556nato's picture

Silver to 20 would be a God-send.

f16hoser's picture

I like the way you think mister! Buying more physical this week!

markmotive's picture

History repeats. We always go back to sound money. You can try to fight it, but all you do is drive the market underground.

France went through the same episode of mega-debt and currency devaluation 200 years ago:

ViewfromUndertheBridge's picture save you all time & effort:

This post is completely wrong. Read the image provided...

"Please note that XAUUSD and XAGUSD (Spot Gold and Spot Silver) will still be available to trade"

This CMC decision has nothing to do with Dodd/Frank 742(a) just click-baiting by this particular Tyler.

French Frog's picture

see my post above ... it's easier to just follow the headlines rather than do your own research, even on ZH (who occasionaly will get it wrong but that happens even to the best)

ZeroPower's picture

Wow. If other brokers join this bandwagon, expect silver and gold to dump really fucking hard in preparation for the July limitations.

JW n FL's picture

I am sooooooooooo hoping that the price falls! I will back up the truck.. I buy on down days.. but I really am having day dreams that the scary, pussy types get out and that I can pick up some cheap metal! BRING IT!!!


P.S. I doubt that I am the only one hoping that the price goes down in front of QE - 3 / Infintity!

mcguire's picture

i agree, this is good news for physical buyers... 

Quixotic_Not's picture

There is -0- doubt that the print & mint funny money politeers will heed the insane dictate of the banksters and continue The Trend...

How much will an ounce of Ag be when minimum wage is $15 an hour? 25?

AgShaman's picture

Good question...but I'm glad i never had to care about it.

I think minimum wage has jumped 50% in the last 14 years.

That would be one tool to teach the serfs how they are being plugged in the 6 'o' clock without any lube....should they choose to compare the minimum wage to how the prices of PM's have moved over the same period...or what the expansion of M3 has looked like....oh wait, they don't put out those numbers anymore...I wonder why?

HungrySeagull's picture

The fuking minimum wage only jumped shit in 30 damn years.

40 years ago A hershey bar was .15 cents AFTER they quit trying to make the ever shrinking .05 choclate bar. Now we fugging pay like 1.20 for said hershey bar.


3.35 to 5.25 then agonizing to 7.25 like a obese sub shop owner trying to maintain his standard of living behind the emaciated staff trying to live on crumbs while working.


Proper wages should be about 30.00 an hour. Or else reset it all.

Oh wait. it's been 30.00 for decades under Union Power.

That was before Union saw car factory go bye bye overseas or south of the border.

Oh wait. Commodies provide a base price, and start figuring out what it takes to chop wood to build a house.

AgShaman's picture

So I guess I had it wrong....since 1997 it's been less than 50% increase?

Minimum wage slaves are the same fools at the "Gas 'N' Grub"....purchasing a 2 dollar energy drink and a 3oz. bag of chips/air for 99 cents...wait, $1.09....transaction made via plastic of course.

They will not require directions to the's been programmed within a homing device in a pidgeon.

HungrySeagull's picture

Oh, before I forget.... when I even learned about the Gold and Silver way back when it was 200 ounce Gold and about.. eh.. 6.00 silver. I think London had set the price each day. One had to actually wait (Not much of any or no internet back then) to get spot price in the paper.

Shoulda coulda woulda. UGH! No.

I am catching up quickly.

NCFREEDOM's picture

Of course 40 years ago .15 was a silver dime and a nickel. Todays equivelent is $2.63, which would be about right since a candy bar 40 years ago was roughly twice as big. So in the right privately owed convenience store I should be able to buy the same amount of candy.....with a silver dime and nickel.......hmmmmm

DoChenRollingBearing's picture

See you in line over at the coin shop JW!

HungrySeagull's picture

Ya know, there is quite a few of us lined up in front of you and the ATM machine at night very close to touching trying to impatiently wait thier turn at the silver or gold metals dealer...

Captain Benny's picture

Thats what we're hoping for.  I've sidelined a few paychecks to be allocated towards the shiny stuff next month!

Debt Rolling's picture

The CBOT will lose clients. The HKMEX will gain them.

Pretty bad move from the US at a time where tax revenue is falling, imo. 

That aside, this is big. It simply means the end of precious metals retail trading. 

Orly's picture

They'll just make it illegal for US citizens to have foreign accounts with foreign brokers.  That's what they did with 4X after they changed the leverage, so the only leverage the home-gamer 4X trader can get in the US is 50:1.

It'll prolly be the same way here, only illegal for the US day-trader anywhere in the world to trade paper gold and silver.  Wouldn't surprise me if they limited access to oil, copper, etc. in the future.

The markets can be affected by too much money in the system, so this would remove a lot of the incoming liquidity, while also stabilising the price.  I just hope they don't get that idea for retail 4X traders.

Ahmeexnal's picture

Your illegal alien gardener/busboy/cook/maid/nanny/plumber/construction worker/carpenter/fruitpicker is your friend. If you've treated him/her well, you have an elligible PM trader who will help you transition safely to the other side.

Oracle of Kypseli's picture

You can get an offshore address with forwarding service and a foreign looking email account and here you go opening a broker account.

They want a foreign address, a copy of your passport and money. Bingo. Nothing gets mailed anyway. everything done online. 

If you can't swing this, take a trip somewhere. If you can't afford the trip, why are you even in the market?


JustACitizen's picture

Why - does trading in precious and semi precious metal produce tax payments? I have to admit - I am curious as I have never heard of that.

HungrySeagull's picture

Fuck it. Buy Silver and Gold now. That's Physical.

We have just crossed an event horizon here. And a month ago I thought mere margin hikes were fantastically "Alice in the Wonderland" now here we are staring upon Stephen King's "The Stand" at the start of a epic 9 hours of hell of movie watching.

Any of you old enough to remember the Stand cheers.

To the young ones, don't try to download it in full, it will break your internet.

slewie the pi-rat's picture

i am celebrating the event horizon called "fatherhood"----happy fathers' day, BiCheZ!

BigDuke6's picture

Good on ya slewie - it will keep getting better and better.

a friend told me that about fatherhood many years ago and its true.

as far as the gold debate goes....

just dont be rushing into anything just now.

the big thing is going to be the (temporary) end of QE3, this will make the headlines and cause the buying opportunity more than the vague shit in the above article.

CMC markets? never heard of them and never will again.


traknologist's picture

Smells like a SHTF scenario is around the corner.

TwoShortPlanks's picture's like putting a condom over the USD after already having 14.4 Trillion children.

tmosley's picture

This makes me harder.

Less participation-->more volatility-->higher ratio of users demanding delivery to speculators-->less money for the COMEX to buy up physical to cover their contracts.

This is getting more and more interesting.  I'm tempted to up my likelihood of a collapse during July delivery.

DoChenRollingBearing's picture

The Bearing has a terrible prediction record, at least for short term movement.  A July collapse of the paper markets is OK with me (though non-expert DCRB does not make a prediction here).  I front-ran the b******s...

The longer the time frame however, the more often I am right.

Physical gold and physical silver.  Add physical platinum, and we have diversity!

Yes, tmosley, each day this gets more interesting.  And each day, my esteem for FOFOA grows.

Libertarians for Prosperity's picture

Nearly every day, you tell everyone that silver volatility is increasing.  

Can you explain what you mean by this?

Thanks in advance....

tmosley's picture

Sure thing, RNR.  It means the price goes up, and the price goes down.  Sharply, and quickly, on no news.

Sadly there is no real measurement for silver volatility, so one is forced to rely on their own memory.  However, those who have traded silver for a long time see it.

But then, being the disingenuous person that you are, I doubt that you actually wanted that answer.  I'm sure you were hoping for something you could use as a segue into some non-sequitur to try to discredit me, something you have tried to do repeatedly, but have failed miserably.  So miserably, in fact, that you have had to open multiple accounts to try, try again.

And I didn't say that it IS increasing, I said it HAS increased, and that it WILL increase further in the future.  Volatility is holding steady at somewhat elevated levels just now.

Libertarians for Prosperity's picture

Sadly there is no real measurement for silver volatility, so one is forced to rely on their own memory.  However, those who have traded silver for a long time see it....Volatility is holding steady at somewhat elevated levels just now.

LOL !!

So here we have - yet again - tmosley driving the "Silver Lemming and Doomer Bus" straight toward the cliff. 

chitty chitty bang bang, chitty chitty bang bang....


Wanna try again?  I'll give you a free mulligan.

Be careful, mosley: this is the all-to-familiar part of the conversation where I've got you over coals, strapped to a rotisserie with match in hand. 

Before you respond, please familiarize yourself with VXSLV. You might find it useful.  Here's a hint: silver volatility has nothing to do with the "hunch" of a goofy, doomer goon.

Price goes up.  Price goes down....





EscapeKey's picture

Be careful, mosley: this is the all-to-familiar part of the conversation where I've got you over coals, strapped to a rotisserie with match in hand. 

Considering your account has only been registered for 3 weeks, and you consequently couldn't have been around when Silver tanked, aren't you supposed to log in under your alter ego before claiming this?

tmosley's picture

Alter Igor.

"Wasn't that hump on the other side?"

"What hump?"

tmosley's picture

He's a lying coward, and a true sack of shit.  When it suits him, he calls me crazy for telling him and everyone else that he is the latest in this string of alter egos, yet at other times like this, he claims to have had significant interactions with me in the past.

Not only that, but this guy is using some sort of pro-tools developed SPECIFICALLY for this site, which catches edits.  I edited something literally five seconds after I posted it, due to it being an exaggeration, and he "jumped" all over it--an hour later!

Pretty sure it's not paranoia when they really are after you.  In this case, this moron is all too transparent.