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CFTC's Chilton Admits Silver Market Subject To "Fraudulent" Influences, Says Manipulation Should Be Prosecuted
If this is not some nasty and quite early April Fool's joke, this is very, very bad news for JPMorgan:
- BN CFTC CHILTON MAKES STATEMENT ON SILVER MARKET
- BN * SILVER PRICES SUBJECT TO "FRAUDULENT" INFLUENCES, CHILTON SAY
- BN *"REPEATED ATTEMPTS" MADE TO INFLUENCE SILVER MARKET, CHILTON
- BN *SILVER MANIPULATION SHOULD BE PROSECUTED, CHILTON SAYS
Now... where are all of those tin foil hats...
The below has just appeared on Reuters. It seems the CFTC has its cross sights on quote stuffers. It is about damn time.
The U.S. futures The Commodity Futures Trading
In
The
The agency's
More recently, manipulation charges against four propane traders with BP (BP.L)(BP.N)
CFTC officials who briefed
The agency's five
After staff consider
The
Existing
But
Before,
That four-part
BANS ON SPOOFING, BANGING THE CLOSE
The Dodd-Frank law also requires the CFTC
Included
The
That will
The agency will also ask whether it needs to write rules requiring traders to test and monitor their algorithms.
For
Bart
regulator laid out plans on Tuesday for how it could use new and
beefed-up legal tools to foil traders who seek to manipulate prices or
defraud investors.
Commission said it also wants to ask for comments on whether to crack
down on certain practices used by high-frequency traders -- such as
"quote-stuffing" -- but it stopped short of immediately proposing new
rules specifically aimed at algorithmic trading.
its latest set of proposed regulations following a sprawling Wall
Street reform law, the CFTC sought to clear up some confusion about its
traditional test for price manipulation, an effort to improve on its
dismal record of having won only one such case in its 36-year history.
rule, which will apply to all markets overseen by the CFTC, including
swaps, also creates a "broad, catch-all anti-fraud provision" that does
not require the CFTC to prove a trader fully intended to cause fraud,
CFTC officials said.
only successful manipulation prosecution was against a broker charged
with manipulating settlement prices for electricity futures in 1998.
were dismissed by a judge, who called the law "confusing and
incomplete." BP agreed to pay a record $303 million to settle related
charges.
reporters on the new package of proposed regulations declined to say
whether the rules would have helped them make their case against the
propane traders.
commissioners, including Chairman Gary Gensler, will vote at a public
hearing on Tuesday on whether to advance the proposal for public comment
for 60 days.
whether to make changes based on comments, the commissioners will need
to vote again to finalize the plan by next July.
new rule seeks to marry existing anti-fraud and anti-manipulation
authorities together with a new section that "fills in all the gaps", an
official told reporters.
regulations address "plain vanilla" person-to-person fraud, and price
manipulation, such as market "corners" or "squeezes", he said.
the new provision could capture manipulative trading activity that
"could potentially fall out of one of those two buckets", he said.
price manipulation cases required the agency to prove traders had the
intent and ability to manipulate prices, tried to do so, and caused an
"artificial price".
standard will continue to exist, but the CFTC included guidance that
"artificial price" means a price affected by illegitimate market forces,
the official said.
specifically to ban three disruptive trading practices as of July 16,
2011 -- a ban that does not require new regulations to take effect.
are "spoofing", whereby traders make bids or offers but cancel them
before execution, and "banging the close" -- acquiring a substantial
position leading up to the close of trade, then offsetting the position
in the final moments to manipulate the closing price.
agency has no obligation on whether to go further, but wants to gather
more comments during the next two months about whether it should close a
potential loophole in the spoofing ban, or prohibit any other practices
deemed disruptive.
include "quote stuffing" -- flooding the market with large numbers of
rapid-fire orders and then canceling them almost immediately -- a
practice that some have argued contributed to the May 6 stock market
"flash crash."
months, CFTC commissioners have said the agency needs to use its new
powers to counter disruptive trades made by high-frequency algorithms.
Chilton, a Democratic commissioner, and Scott O'Malia, a Republican,
have said regulators should hold traders responsible for "rogue algos"
that hurt markets.
»
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We are not an empire, but a land of laws, temporarily forgotten. Corruption, once exposed, cannot stand the light of day. Judge Levine is toast...every decision he makes now will be questioned, openly by more and more aggressive means until he's done.
wow ,
who brings the popcorn ?
Will JPM and HSBC even care? They know they own the CFTC and wont find against them. They are for a slap on the wrist, whilst all the while continuing on.
I recommend good old fashioned lynching of corrupt regulators.
Its true. The big boys own this whole situation. Manipulation of the gold and silver markets have always gone on since day one. It is the cornerstone that supports the entire ponzi scheme known as the Federal Reserve Bank. They know and as many of you know, that gold and silver are real money. So they must control the value of real money in order to make the whole crooked system function.
coming to an end soon...
FOFOA...http://fofoa.blogspot.com/
FOFOA is brilliant, his latest two articles are truly amazing. LOTS of insight.
That said, I do not know what will happen. Will gold go to $50k / oz AND society remain intact? Would be fine with me.
+ $1325 breezer1.
The HFTs like to play with themselves but if a girl comes along they run a away.
Hehe, spot on Buzz.
Widowmaker to Chiton, fraud and manipulation is NEVER prosecuted, it's rewarded.
What else can we add to the list?
Stocks, bonds, house prices, etc, etc, etc
yawn
The fascist scum are above the law. Isn't it obvious by now?
wow
Triple critical MSM MORON PROPAGANDA ALERT!
Just saw Sharon Epperson repoting on this from the NYMEX, and she illustrated the investigation of silver price manipulation with a chart of how "silver has outpaced gold this year".
What can I say? I'm speechless...
I want to know WHO gave her that chart?
What a surprise. Silver market is full of toxic paper with no concern for backing. Lets guess how this is going to end.
Yep , leverage of 100 to 1. The ETF's like to show us their "vaults" full of gold product to back up their shares but who knows where those pictures are made and when. The only way to own silver and /or gold is to have physical possession of it.
Trick or cheat! Hold the 'or'.
I fully expect the stock market to tumble -100 about 45 minutes before Gold/Silver expiry today so they can drive the old pesky relic's down hard.
The PM market is being heavily manipulated here as the dollar starts to burn. This has to be the most rigged market on the planet. If the FED loses the battle against the rising price it will start a stampede into the PM's and the Dollar will crash.
Gold to $1314 ???? then a huge Gold/Silver & market rebound ?
What time is options expiry?
I think around noonish not exactly sure.
Was referencing this blog.
http://www.marketoracle.co.uk/Article20677.html
It looks like they are losing the war right now so that is why I expect an all out assault a little bit before expiry time today.
Thanks! I've noticed that since August/September-ish the clout of the "options expiry" take-downs has lost a lot of momentum.
I agree thats why the line is drawn in the sand here.
Good luck
I found the info on expiry time it looks like 12:30 PM central.
http://www.usafutures.com/goldfuturesoptions.html
Later
A friend first let me know of this phenomenon a year or so ago, Andrew Maquire confirmed it, and you're helping to keep it alive Threeggg. Nice.
To be honest, I am surprised that ZH doesn't have great big ubiquitous 'Red Alert' posts flashing warnings every op-ex. That could be your thing I'm sure, if you wanted it... meh, mb you wanna stay low-key. Anyway, keep it up.
Best Regards
Note to my personal 'serial junk' troll: you missed one above.
thanks, bitch. any others?
anyway, nice call on the gold futures expiration rally up there, Threeeggg. spot on.
Heh, too bad about all the egg on your face chappy.
You should try throwing a little reason into the mix when you comment, I guarantee it will help; you wouldn't have to be reduced to a petty junk troll...
i'm bringing it, GoinFawr. what can i say, you bring out the "junk troll" in me.
what would you like to reason about? your denial that capitalism supports every facet of your socialist life with its innovations? or would you like to reason about how socialism in america, europe, and japan is on the verge of collapse?
or do you just wish to cherry pick single statistics from chosen isolated studies that support your delusions? this is hardly "reason", GoinFawr, you "great thinker", you.
you're asking your own brain loaded questions, and getting loaded answers. thats your problem, bud. i feel sorry for the folks around you, if there are any.
i'm sort of glad you are a socialist. send me a photo from the soup lines in a few years, will you?
by the way, if your 'qaulity of life' is so much better in Europe, then why are more people killing themselves? good times!!
http://en.wikipedia.org/wiki/File:Suicide_rates_map-en.svg
http://en.wikipedia.org/wiki/File:Suicide_world_map_-_2009_Male.svg
how's that egg on your face doing, idiot?
wow. Pretty colours. I see on that first chart America doesn't look at all 'blue', that's good right?
And on chart two I see that shade of yellowish orange is a very sunbeam of perfect contentment illuminating a star spangled banner fluttering in a warm May breeze through the clouds of sorrow that surround it.
Chops, is there a point to any of your links, or are you just trying to bore me to tears?
Oh wait, I see it now! On your first chart Russia is red (those gosh/darn former pinkos), and America is only yellow like a star that shines out while all around is dark. Ok. So:
1.America isn't having quite as many suicides as Russia these days according to wikipeidia, going by the colours. Check.
2. The Soviet Union broke up, and Russia dropped totalitarianism in favour of capitalism, years ago. Check.
3. America, according to your own words, is now more or less a socialist state, much to your disgust. Check.
Conclusion: America, under the socialism you abhore has less suicides than Russia under the capitalism you dote upon?
Uh, interesting. I admit I didn't expect you to provide evidence to that effect. Though it seems to me that this does place your foot firmly in your mouth, chaps, no? Or did you 180 when I wasn't looking?
Anyway, those charts are likely all bullshit.
And I have made it quite clear, time and time again you thick sod: I am not against capitalism, I am for mixed economies. IE If there is anything I am opposed to, it's extremists like yourself.
right. here is another one highlighting the "mixed" economic utopia of Norway.
http://en.wikipedia.org/wiki/List_of_countries_by_suicide_rate
please note that your female suicide rate is 33% higher than in the U.S. with men like you, this makes sense.
so, tell me, maestro, what is this appropriate "mix" of which you talk so much? You've got a monopoly on knowing exactly how wealth should be confiscated and resdistributed by the state. Please, tell me how we can avoid our public coffers in America from getting raided by career politicians and their cronies, because right now this is not really helping little old ladies and orphans who are going to be freezing this winter as they decide between buying food or paying their gas bill as a result of money printing by our beloved Federal government.
or, perhaps you should mind your own business, and keep a closer watch on your own chicken coop, because the wolves are circling.
http://www.aftenposten.no/english/local/article1189799.ece
as for the former Soviet Union, its a terrible thing when vast amounts of people become dependent upon the State only to have this State inevitably collapse under the weight of corruption and unrealistic expectations. It turns out that Russians should have chosen individual liberty and self-reliance after all. Some of the staunches capitalists with whom I've ever talked are Eastern Europeans for this very reason. They have lived under the 'paradise' of State control and understand all too well the pitfalls and perils.:
http://en.wikipedia.org/wiki/Holodomor
good times!
Look, repeatedly posting the same irrelevant links does not an argument make, you knob.
Heh, combined with your claim that the US 'out-socialists the socialists', you don't even seem to realize that you're showing the opposite of what you think you are with your fallacious suicide syllogism, you rube. But as it is a stupid, obvious error in reasoning I suppose it doesn't matter anyway. IE You're illustrating nothing except your own inability to put together a cogent argument.
And how on earth did you arrive at the conclusion that because mixed economies provide better standards of living for a higher percentage of their populations that I somehow support the fed printing the USD out of existence? Quit trying to fill my mouth with your shit; I doubt any but the most obtuse are buying it, seriously.
Good laugh though...
tssk, tssk. temper, temper.
facts are stubborn things, Goin Fwar. ha, ha. :)
When did the Dukes take over JPM?
Talk, talk, talk. WE WANT ACTION!
Speaking of tin foil hats or in this case the absence thereof...I wonder what Jeffrey Christian is doing right now.
The madness stops when we collectively refuse to use Federal Reserve Notes. We have a legal tender coin- silver American Eagles. Presently, they are untraceable, untaxable and if accepted by enough people- capable of bringing the whole system down.
Please don't talk about the IRS. If you bring a system down- you don't report monetary actions.
We need a new flag: Perhaps a don't tread on me over the stars and stripes?
Blythe just shit herself.
This is significant. Chilton has been waffling. Now he appears to be on board.
IF this leads to position limits, we will look back upon this day as the first victory in the war against the Evil Empire. We haven't destroyed the Death Star yet but we've disabled the force field that surrounds it.
(obligatory)
http://www.youtube.com/watch?v=6v5VahaEL7s
Glad someone else remembers Blythe and her "My employees are scared shitless!" quote!
Chilton would be wise to not do any hot tubbing or he might end up like Matt Simmonds with one of those traceless CIA darts to the back of the neck.
no shit
What is... constipation?
unless it was a laser weapon fired into his hot tub from a drone. whatever they did, they've gotten it down to where there's no evidence and there are no consequences.
that said, i don't think they will simmons chilton. (nor will they pittman him.) i think chilton is speaking for gensler, and with dudley at the fed now, i'm guessing that goldman is long the metals and gensler is doing this as a move against JPM. it is in the tradition of bear, lehman, and merrill.
+++++
Yes. The latest COT report bears this out, too.
Silver is rolling. A close above 24.10 in the Dec10 would be a very welcome development.
If the darts are traceless, how can they be attributed to the CIA?
I'm just askin'.
How often do Coroners look for Polonium in a corpse?
Presto, were green, no such thing as a down market. Just look at the stock market go US citizens, get some free money. All the Fed can do is juice the markets, everyone knows they will print till we run out of trees. Get your free money buy SP 500 futures for an easy profit.
Chart: Silver
http://99ercharts.blogspot.com/2010/10/silver.html
http://www.zerohedge.com/forum/99er-charts
Empires don't fall all at once. You have to chip away at the foundation little by little, and this is at least an admission.
Along with the recent CFTC judge saying the legal system is rigged against complaintants, and the JPM mortgage fraud, the markets and the derivatives are all looking like the big fat crony conspiracy that they are.
It's all been a hologram.
.
...it seems the only thing i can trust at this point is deception. at what point do i begin to deceive myself?
this story unraveling at such a pace comparable to maple syrup oozing out of the maple tree in an ice storm is questionable in and of itself. which takes me back to my first statement...carry on.
Yes. You get it.
The point at which you deceive yourself is the point at which you think the regulator is working on your behalf. The moment you think a politically motivated government body is is better at protecting you that you are yourself.
Talk is cheap.
Keep in mind, that "fraudulant" will be defined by the CFTC.
I'll translate.
Any perfectly legitimate trading by companies not politicaly connected doing things that are perfectly legitimate but that 99.9% of the public doesn't understand (which is virtually everything).
No real fraud (mostly committed by large, politically well connected firms) will be prosecuted EVER or there will be nominal slaps on writs to show Joe Average that the CFTC is "on it".
This is how regulation works. I'm shocked (not really) that you lot expect anything different.
I'll believe that the CFTC will really do something when Andrew McGuire gets interviewed on Kudlow.
My hat is made of silver foil.
this is a "fuck you" government having an "Oh shit" long moment
Maybe you gave away your silver too soon?
You seem like a "strong hands" guy. Recipients of silver gifts might be weak hands...
Not saying giving away items of value is wrong or bad, not at all. But, maybe get more bang for the ounce if/when price goes up?
EDIT: Recently I have given away small amounts of gold and silver (in the form of online contests -- only smart and hard working people got my PMs).
As much as we ZHedgers delight in corruption exposed, I suspect this announcement is a CYA.
Inconsequential at the general public level.
Chilton smells smoke.
I expect many more announcements like this one going forward. The rats are slowly moving toward the exits.
these mo fo's are doing their best usain bolt. check out harvey organ blogspot. he got a new computer over the weekend..
Does this mean that the prime time porn channel is now just on re-runs?
I was going to write a crude and rude smart ass comment on the above quote, but will refrain, allowing all to re read and have a Waddle Moment of reflection.
Have a Nice Day.
As in to sit on them (and do nothing)?
I just do not think it will make a big difference what the
CFTC does,it will only exillirate the inefetable of a giagantic
short sqeese.Think we already started the sqeese a lot of
big money smell the blood and pooring more and more fiat
in the physical silver.
Do you recall just recently the headline blip: China to reduce silver exports by X%.
something like that... you would have thought that on news like that we would have jump up a modest .25% but that same day, I think the price of silver in general went down.... the boys must be working overtime to drive down pricing in order to clean out all those nasty little shorts, I can't even imagine what would happen if it was free to really operate they way it is supposed to (in theory).
"RELEASE THE KRAKEN!"
No where in history has any body manipulated a market once market forces take over. Once the whole world jumps on the Gold and Silver train, they can short until the sky turns green. They will not win. No body can fight market forces!!!
Oct 26 (Reuters) - There have been repeated attempts to influence prices in silver markets, Bart Chilton, a commissioner at the U.S. futures regulator, said on Tuesday.
"There have been fraudulent efforts to persuade and deviously control that price," Chilton said in prepared remarks before a Commodity Futures Trading Commission meeting.
Chilton said he could not pre-judge the outcome of the CFTC's ongoing investigation of the silver markets, but said public deserves some answers to their concerns. (Reporting by Roberta Rampton and Ayesha Rascoe; Editing by Neil Stempleman)
the man used the word "fraud"...what the fuck else needs to be said...iresspective of prosecution how can this not move the "real price" in the direction we all now it should move...to the fucking moon.....
no the public deserves to not be blatantly raped by Fraud Street
This is a two year old investigation which is still ongoing. The timing of this press release makes me think that the "problem" in the silver COMEX is now too big to control and it's CYA time for Chilton and the CFTC.
I have some Sheffield silver nickel cutlery with E.P.N.S. A.1 quality.
Any idea how much % silver is coated on these knifes and forks via electrolysis.
To answer the question posted above with another question, I thought next
AU/AG options expiry for delivery is Tuesday, November 23 at 4:30pm ?
Am I incorrect ? Anyone? Shall I just push the LifeAlert button....
On Star has an app for that..
Tin Foil Hat song
http://www.eclectech.co.uk/mindcontrol.php
if you wear the hat you should know the song
The CFTC has finally become totally irrelevant! It is time for the people to take action and buy up all of the remaining above ground silver and put the COMEX and JPMorgan out of business forever.
Then you also have to prosecute the Fed and the HFT's.
Yep, please share. It's time to spread some 'Silver Perspective' to the unknowing sheeple,
http://www.youtube.com/watch?v=BKzNVrZ5Q_s
MH likes SGTbull07. There are more than a few good folks on utube alerting the general public. Sad thing is that only about 5000 of us seem to be awake to the dephts of this travesty. I keep seeing the same names , so the general public is still slow to catch on.
Time to settle into the ole 3 point SPY range for the next 4 hours.
Tin foil futures plummet on the news that hats no longer required.
National security has always been just another way of protecting the liars, theives, and murderers in government. FYI, God doesn't pardon on the basis of national security.......
8 But the fearful, and unbelieving, and the abominable, and murderers, and whoremongers, and sorcerers, and idolaters, and all liars, shall have their part in the lake which burneth with fire and brimstone: which is the second death.
Revelation 21
King James Version
22 For as the new heavens and the new earth, which I will make, shall remain before me, saith the LORD, so shall your seed and your name remain.
23 And it shall come to pass, that from one new moon to another, and from one sabbath to another, shall all flesh come to worship before me, saith the LORD.
24 And they shall go forth, and look upon the carcases of the men that have transgressed against me: for their worm shall not die, neither shall their fire be quenched; and they shall be an abhorring unto all flesh.
Isaiah 66
King James Version
Correct! and you can look it up at
http://www.kingjamesbibletrust.org/resources/Digitized-KJV-of-1611/
just plug in the citation info and zoom in on the original
The only way to stop the manipulation is to immediately impose position limits on silver contracts. Anything else is just jawboning.
long on talk, short on action
I bet this has to do with Eric Sprotts Silver ETF. Hmmm, I wonder where that 802,519oz of silver went yesturday. The Comex is sure to bust soon...
Tyler leaned over the man's face....
"THESE GUYS HERE ARE GOING TO TAKE YOUR BALLS...."
....DO NOT F@#* WITH US."
Well now , with the growing list of broken things that don't work in this country, we can now add the voting process(as if that is any real big news) ..
http://www.fox5vegas.com/news/25511115/detail.html
voting irregularities in nevada....
Voting has been subject to manipulation since day one. It is one of the reasons we sell democracy and not the republic. It is why leaders continue to change the republic to a democracy only. If they can change the presidential election process, we will have become a democracy in absolute terms.
To Diebold: The jig is up, ya shoulda made the voting machine software "open source!"
All of a sudden, Chilton got religion?
"Now... where are all of those tin foil hats..."
Got mine on! Made out of Reynolds' Aluminum, Has Dow 11,000 written on it too!!!
I just ordered a box of silver maples on this news... and a brand new jar of vaseline for the shipment arrival party. All courtesy of B of A's credit line. I haven't bought any shiny in a long time. But hey, with news like this I went ahead and threw my remaining pebble at the beast. If the price drops below 20/ounce I will be accepting sympathy flowers. Otherwise, my silver porn production company will be launched!
How do you say election time rhetoric by the insider trading, bribe taking, lying bastards, facist politcians, both parties included, after the election they will all
go on vacation, and resume the ostrich
head in the hole position.
I'm skepticle that any meaningfull jail time will be served out to the crooks, instead of paying a fine and havin the taxpayers via investments pay for the transgression, let me see the quillotine do some work, VIVA LA FRANCE!
unless pee wee chilton seeks indictments he is blathering hot air.....selling massive quantities of silver naked short - the equivalent of 60-80% annual world wide production as in the case of jpm - is market manipulation and fraud through and through....dimon should be in an orange jump suit....and so should chilton.
This Chilton seems to not understand that he is attacking the masters of the world with this statement. Notably the Rothschild family.
I bet he's gonna have some 'car accident' if his actions lead to a real change.
unfortunately honest men are not wanted in high places to day and integrity is reserved for the faithless thus these honest men are expendable.
God speed Bart - stay safe - The international is unhappy
DOW weekly chart shows the rising wedge contained within the megaphone pattern. This remains a very bearish picture and we should
get a breakout soon.
http://stockmarket618.wordpress.com
There is something I wonder, when silver manipulation will go mainstream, wont people people holding "paper silver" sell it and silver prices go first down instead of up ?
Not if there aren't any buyers...
Those on top of the manipulation are of course the biggest hoarder. Gold and silver are their money for hundred of years as they understand what it is.
They'll just allow things to collapse when they think it is about time.
My oh my!
Bart dude, I owe you a huge apology. I have bagged you as the pin up boy, orange and water boy of the CFTC fo almost 3 years now. You have proven to be the only (publicly) honest regulator in the US. Mind you, the CFTC had to be dragged kicking and screaming into the light by the pissed off public, before we could even get to this acknowledgement that there was something going nefariously wrong in the COMEX.
Congratulations on your new found insight. Now look around and see the rest of the shit going down that the banks are responsible for.
So do I take it that everybody's sure HFT quote stuffing brought DOWN the price of silver?
Really? Okay. I guess HFT works differently in the metals market than it does in every other market where it operates.
So, Gold to an HFT-supressed $1700???
Really?
Okay.
I know it's complicated and hard for you to keep up, but here is the gist:
Note the correspondence? (Hint: neither the MSM or HFTs are on the side of the small investor).
So when does the class action suit start. I want in and I want blood.
Does this mean that my 7000 ounces is worth than i thought?
Doh!!!
Voulez-vous coucher avec moi ce soir - bitchez
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