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CFTC To Hold Open Meeting On A Proposed Position Limits Rule
hat tip ~ Mondo Visione
CFTC To Hold Open Meeting On A Proposed Position Limits Rule
The United States Commodity Futures Trading Commission (CFTC) will hold a
public meeting on Thursday, January 14, 2010, to consider issuance of a proposed
rule on energy position limits and hedge exemptions on regulated futures
exchanges, derivatives transaction execution facilities and electronic trading
facilities.
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What: |
Meeting to on Energy Position Limits and Hedge Exemptions |
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Where: |
CFTC Hearing Room, 1155 21st Street, NW, Washington, DC |
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When: |
Thursday, January 14, 2010 |
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Viewing/Listening Information: |
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The CFTC has made available the following options to access the |
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1. |
Watch a live broadcast of the meeting via webcast on www.cftc.gov. |
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2. |
Call in to a toll-free telephone line to connect to a live audio |
»
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Cover Up! Silvergate.
doesn't JPM administer SLV ? and when was SLV formed? another layer. maybe all SLV has in its vault, are contracts.
Yes they do administer it. Can you imagine what they really have backing up all that silver they claim to have, tonnes of paper and all of it short silver.
If anyone has shares in SLV, please get rid of it and buy the real thing. If not when and if silver were to make a move you would be left holding-by the shorts that is.
Regulators Who Won’t Regulate!!
One of the most disturbing aspects of the current financial crisis is not just white-collar crime, but the lack of a cohesive reaction to it by law-enforcement and regulatory authorities. It was the lack of oversight and common sense regulation that permitted the crooks on Wall Street and elsewhere to create the epidemic of fraud impacting us all.
As bad as the lack of justice for past misdeeds is to the public psyche, there is something even worse: regulators ignoring an obvious crime in progress. Especially when the evidence of that crime is readily available and published by the regulator itself. Yes, I’m back to the ongoing silver manipulation and the evidence of that crime being issued by the primary market regulator, the CFTC.
The new weekly Commitment of Traders Report (COT) and the monthly Bank Participation Report (BPR) for March have been released, for positions as of March 3. There were some stunning new manipulative milestones recorded in both reports, in terms of concentration by the big short(s) I was expecting the big shorts to have reduced their short position. That’s what they normally do [Normal manipulation isn’t working anymore?]. That they actually added to their short position was a shock to me. Clearly, their selling caused prices to drop. This is Manipulation 101.
In the COT, the reported net percent of the market held by the four largest shorts rose to the highest level (51.7%) since 2002. In "true-net" terms, with all spreads removed (as discussed last week [Here is the link to “last week”]), the big 4 were still over 70% short the entire market. The CFTC is on their third silver investigation within five years, while at the same time reporting that the short concentration has grown to the highest level in that time. This is akin to tripping over and not seeing the dead body in a murder investigation.
TYLER! Will you PUUUHLEEEZE write an article which digs in to the CFTC's complicity in the massive silver market manipulation? Their excuses and denials are worse than Bernanke's or Madoff's and they are not being investigated!
Is there any rule of LAW in this nation anymore???
How is JP Morgan getting away with this?
ZH has pub'd several pieces outlining the egregious chicanery within not only silver futures but the SLV as well.
search within the ZH logs for Project Mayhem's pieces on the topic, who has put out some of the very best research into the issue.
We need a full investigation of the CFTC! What is Washington waiting for?
Move your Money AWAY FROM JP MORGAN!!!!
"I am going to speculate based upon the known facts. Maybe I will be proven correct, maybe not. However, the nature of this speculation is so disturbing, that I hope I am wrong. But I need to state it because if I am close to the mark, the implications for the silver market are profound.
I think the data in the COT and the Bank Participation Reports indicate that the U.S. Government may have bailed out the biggest COMEX silver short by arranging for a U.S. bank to take over their position. This coincides with JP Morgan’s takeover of Bear Stearns. In fact, it would not surprise me if the bailout was JP Morgan taking over Bear Stearns‘ short silver position, at the government‘s request. While this silver bailout (if it happened) was no doubt undertaken with financial system stability in mind, it has disturbing implications of legality and equity"
This is the relevant quote from the CFTC’s Oct 8 letter.
"In effect the increase [in the short position] reflected a one time acquisition of positions that were acquired through a merger in the industry, and not new trading by a bank. Thus, the assertion that there was new activity undertaken by the banks that led to a fall in silver prices is not correct since the "new" activity reflected in the CFTC’s report was in essence positions that had already existed in the market prior to July 1st."
The CFTC clearly confirms, in effect, that the big silver short position was related to JP Morgan’s takeover of Bear Stearns, since no other merger provides a plausible explanation. However, the Commission is not speaking truthfully about an increase in the concentrated short position. The CFTC’s own data, in weekly Commitment of Traders Reports (COT), show a sizable increase in concentrated short positions of some 12,000 contracts (60 million ounces) from levels before July 1st to the August Bank Participation Report.
More importantly, the real issue is not about when the one or two U.S. banks increased their short position, but how large that short position grew in the August Bank Participation Report. The CFTC is deceiving a U.S. Congressman by attempting to reduce the argument to when the short position was increased, not the obscene and manipulative size of the position. This is deception through omission and misrepresentation. What difference does it make when the manipulative position was established? The issue is how can a short position of 25% of the world production of any commodity, held by one or two U.S. banks, not be manipulative?
Bear Stearns held the largest concentrated short position in COMEX silver (and gold) futures at the time of its forced merger with JP Morgan in March. That position was not discovered until the publishing of the August Bank Participation Report followed by the October 8 letter from the CFTC to Congressman Miller. Furthermore, Bear Stearns had no legitimate backing to the short silver position, either in actual metal or cash. Otherwise it could have been delivered against or bought back, just as would have happened were it a long position.
The price of silver at the time of Bear Stearns implosion was $20 to $21 an ounce. A free market covering of a concentrated short position of this size would have driven silver prices to the $50 or $100 level and would have exposed the long-term manipulation. Rather than let the free market deal with the required short covering of such an uneconomic and unbacked short position, government authorities arranged to have the short position transferred to JP Morgan. This was undertaken by the U.S. Treasury Department, along with taxpayer guarantees against loss to Morgan worth billions of dollars. This was done, no doubt, to save the financial system from imploding. This was also patently illegal, as it aided and abetted the silver manipulation.
I’m sure the motive behind the illegal transfer of the silver short position was the mistaken assumption by Treasury that an explosion in the price of silver (and gold) would threaten overall financial stability. Well guess what - they succeeded in crushing the price of gold and silver, but to no avail, as financial stability has been shattered.
JP Morgan was not just an accommodative good corporate citizen in the illegal transfer of the manipulative silver (and gold) COMEX short position. In addition to undisclosed government guarantees against loss, JP Morgan was given free reign to liquidate the COMEX short position at their discretion, knowing full-well the regulators would look the other way, no matter what dirty tricks were necessary to cause the price to collapse. Nor was JP Morgan a neutral agent in the silver price collapse. Data from the Office of the Comptroller of the Currency (OCC) http://www.occ.gov/deriv/deriv.htm indicates that JP Morgan held a much larger Over The Counter (OTC) derivatives position in silver and gold than was transferred to them from Bear Stearns.
My analysis shows that Morgan has made many billions of dollars, perhaps tens of billions, from their downward engineering of silver and gold prices from their combined COMEX and OTC short positions. They have used that engineered price decline to buy back as many short positions as possible. If investors are wondering what caused the destruction of billions of dollars in gold and silver values, metal and share price alike, look no further than JP Morgan, and the government officials who enabled them.
There can be no question that the CFTC is complicit in all these illegal activities. Same with the CME Group, owner of the NYMEX/COMEX. It is not possible that they are not privy and an active party to this successful downward manipulation. To think that officials at the CFTC, from the top of the agency, to staffers and even the Inspector General, have taken oaths of office to uphold commodity law and then have allowed that law to be repeatedly violated is beyond repugnant. That they have knowingly participated in an organized cover-up of this manipulation and have taken to lying to a Congressman calls for criminal prosecution.
I have been reading about all that you mention for some time and I believe you are point on.
JP Morgan seems to be in bed with the CFTC and there is nothing that you and I can do about it.
The manipulation in the SILVER market is monsterous!! The CFTC routinely says it is going to investigate this OBVIOUS crime going on and comes back saying there is nothing going on---
CFTC---part of the FRAUD on a grand scale!!
http://seekingalpha.com/article/173221-the-art-of-silver-manipulation
Duhhhhhhhhhh, if oil goes over 100 smackers the whole house of cards will come tumbling down. At 4 bucks a gallon, you're average family just incurs 2,500 additional smackers of cost, on you're average 60k income, not even accounting for biz costs, you might as well go home and sit........plus, there is not a biz around who can budget based on the volaility in commodities we are experiencing.
good lucky
How about silver contract limits?
BANK RUN BITCHES!!!
The story of the manipulation in the silver market is just stunning, isnt it? JP Morgan needs to be prosecuted on this one. Where is the CFTC?? Oh, let me guess--out to lunch with Mary Shapiro?!
they excluded metals. Another regulator held captive by JPM.
good catch. possibly the most important note from the hearing is what was left out. big surprise, eh.
This has to be a GLOBAL approach....
Trading moves overseas.....
This meeting was a joke....
The OTC market remains untouched....
GS Gensler....
IS in the catbird's seat....
Oil pyramid limits? NG pyramid limits? LOL