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Bart Chilton: Since 2007's Rise Of The Machines, "Markets Have Not Been The Same"
Submitted by Adam Taggart via Peak Prosperity,
The commodity markets impact almost everybody on the planet, every single day, because some derivative or variant of about everything that they consume is impacted by those prices. Whether it’s a home loan, or a piece of jewelry, or a fill up at the gas station, or a gallon of milk, or a loaf of bread -- commodity pricing is vastly more important than most people actually realize.
~ Former CFTC Commissioner Bart Chilton
In theory, regulation is supposed to set and enforce the rules of the game that market participants play by, in order to ensure that price discovery remains efficient, effective -- and most important -- fair.
In practice, there's plenty of debate to be had on how successful our regulators are in effecting their mission. And one investment class in particular, commodities, frequently comes under criticism for questionable price action.
So, this week we talk with Bart Chilton, former Commissioner of the Commodity Futures Trading Commission (CFTC), about price discovery within the commodity markets, and whether investors can have confidence in the "fairness" of the current system.
Perhaps it will come as little surprise that Commissioner Chilton, a longtime inside player, does not see the current environment as 'broken' or 'unfair', as some critics claim. And as a former regulator, there are certain topics he is not allowed to comment on. But that said, he's a vocal advocate for several reforms that he believes will reduce the chances for manipulation within the market -- particularly position size limits and better rules for high-frequency trading (HFT) algorithms:
[Position] size is an important thing to look at. That’s why in my career as a financial regulator I sought to have limits placed on speculative positions. And unfortunately, there haven’t been. Even though it’s law now, my former agency has not sought to finalize those rules.
Size does impact markets and it can push prices around. In electronic trading, even a small size can move prices just because they’re so quick. You don’t need just to have size. If you control 20% of the crude oil market, and I’ve seen that in the past, you make a big trade you can move a market. Well, today with electronic markets and high frequency traders you don’t have to have 20%. You just need 2-3%. If you put a price out there very quickly, it can move markets.
When asked directly if there's a manipulation problem in the precious metals market -- silver, especially -- he did not confirm or deny. Instead, he laid out the 4 pillars of evidence the CFTC looks for in determining whether manipulation can be proven: intent, size, trading action, and impact on price. From his experience during his tenure, it sounds like there were a lot of cases where many of the pillars were present, but few where all 4 were in enough abundance to overcome the "dueling economists" quagmire that ensued when bringing the case into a courtroom.
Commissioner Chilton is sympathetic to the perception many frustrated and bruised investors have about the precious metals markets -- he himself is on record saying that the large short position concentrations have been outrageous -- and he urges them to share their observations and demands for reform with their elected legislators. Why not the CFTC directly? Sadly, Commissioner Chilton notes, "regulators by and large aren't listening to average people".
Click the play button below to listen to Chris' interview with Bart Chilton (27m:35s)
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umm, Duh.
I remember when everyone said Chilton was going to undue the metals manipulation. They are still waiting for Godot.
Gosh. Thanks, Bart. For all the fish poop and brown water.
What?
Yes, Bart. Redeem yourself. That's it, redact history.
Get a haircut.
what a lying mullet headed scumbag moron pimp pumping prick
Rick Flair should stick to wrestling
"regulators by and large aren't listening to average people"
Condescending asshole! More than just "average" people can see the fraud and know what's going on. Stop pretending that there is this Regulators vs Average man feud only, while ignoring the group of central bankster criminals you never even mention.
Go to hell, Chilton. Sick of your opinion and think it's 100% worthless.
https://www.youtube.com/watch?v=M6e2FL-o1zs
Bankster Bart ''the Shill'' Chilton
It Looks Like The Whole Financial System Is Rigged?...
IMAGINE, You Have Optic Linked Coded Algos Connected Directly To ALL Trading Systems, And RUN By BANKSTERS ???
WTF Do We Think They Will DO, Make GRANNY Rich ??????????
Its A Stinking Cesspool, And Seemingly 100% Legal...
To repaet for the nth time, why has nobody requested access to the documents of the CFTC Silver rigging "Investigation" under FOIA? It seems reasonable to conclude that the CFTC that "There is no evidence of ILLEGAL activity" in view of the fact that The Fed was acting through the BB's. So the BB's were simply acting "On behalf of clients" and The Fed is above the law because of the regulations pertaining to the ESF.
But it would be nice to confirm that wouldn't it?
What is with these sleazebags? They are scum when they are doing their jobs and then they try and resurrect their consciences after selling their souls for money and corruption?....
WHY. THE. FUCK is ZeroHedge posting this???!!! NOBODY gives a FLYING FUCK what this mongoloid cunt has to say!!!
Rick Flair should stick to wrestling
One reason I stopped subscribing to Uncle Ted is that he had a naive belief in Chilton.
Nope, they're all crooks ( or bribed and/or threatened.l
IMO our best shot is Chaos and black swans that screw up the
psycho control freaks plans somehow.
great point....my mom told me not to take candy from guys like that driving in convertibles when I was 4 years old
<<I remember when everyone said Chilton was going to undue the metals manipulation. They are still waiting for Godot.>>
I already asked this question on the dollar shortage thread, but I think it might fit on this thread too. This is a question for anyone who has been paying attention to the bullion markets lately:
What do all y'all think of HSBC closing all 7 of its vaults in London, just ahead of the opening of Shanghai's new gold exchange?
Been listening to podcasts about this all day and altho it seems like pretty big news all right, I have yet to see any commentary about it away from the bullion blogs.
My uneducated opinion is that this exchange opening signals the currency reset. (Or at least, official 'reset' of the gold price, which would cause a currency reset.)
Anyone read about this? Opinions?
For anyone in the dark, I'll link Andrew Maguire's interviews with KWN and Turd Ferguson, which I found the most informative:
http://www.silverdoctors.com/big-changes-coming-to-the-global-gold-marke...
http://kingworldnews.com/andrew-maguire-2-28-15
It's been a long time since I've given myself permission to get excited about gold. (It's been - what - 3 years? since I last found gold price even worth noticing.) Just stack on doggedly, day in to day out, while waiting for Godot to arrive. Dare I hope that price discovery for bullion is about to be a relevant topic again?
ETA: Here's a part of the blurb from Bullion Capital re: their new electronic exchange:
<<Fixing the precious metals price fixing
An electronic exchange is the most transparent approach to eradicating the front-running issues which a number of clients have been complaining from in past years. Bullion Capital’s solution has the capacity to take the power out of the hands of the very few precious metals market makers.
The terms of trade of precious metals are largely set by six banks in London, all the other banks in the world have to deal with these same six on order to get their deals done.
According to sources across the industry, there has been substantial frustration especially on the part of Asian banks with their orders being front-run. An anonymous marketplace where the liquidity provider can’t see the liquidity taker eliminates the opportunity for front-running and price manipulation.>>
http://forexmagnates.com/bullion-capital-track-revamp-physical-gold-market
My theory has been that watching commod's will tell you about the currency reset coming. Think of this for a moment: Can we have a currency reset / revaluation with gold at $1600, Silver at $40, Oil at $110, wheat, lumber, etc....
Seems to me the major commodities had to be reset lower in anticipation of the currency reset coming. Makes total sense, because then the MSM can say "well, it's not that big a deal, I mean oil was at $140 before and after this revaluation it's only at $120", or something along those lines.
Just MO.
Yes, I have also been thinking along those lines. It's just like when demand for physical PM's is stong, the cartel use any excuse (BLSBS for example) to hammer the metals down so that when market forces push prices back up again, it is from a lower base so the upside is more acceptable to them.
This reminds me of all those cities that China built that are empty.
It's like that.
It's not fake.. it's REAL!!!! Buy stock NOW!!!!!!
his hairstyle is epic.. But he makes a valid point for sure....
BOE seems to think HFT improves price.. http://hedgeaccordingly.com/2015/02/bank-of-england-working-paper-hft-he...
He should go back to publishing auto-repair manuals. At least then he'd be helping "average people."
Not even gonna read this article. Chilton has "ZERO Credibility!" Nuff said.
Is this an Onion article Tyler?
Central Banks want gold manipulated down to shore up their beloved fiat. As long as they can easily use the paper market to beat down any rise in prices, no matter how much physical is in demand, then no, we won't have real price discovery. Central Banks are fiat pushers, gold is their enemy, paper is their weapon of choice. Every discovery of price for gold that is too high for the fiat pushers is simply driven right back down by dumping paper gold.
The whole system is a giant fake. Never in history have we had unlimited fiat printing, permanent zero interest rates and wide scale market manipulation by central banks. The result will be total system failure.
They arn't printing money they are printing credits, just as good as the real thing without the right of property attached.
The story of the printing of money has long been told and its a Sissphisian task, the more you print the stronger you get untill it all collapses. Then they do it again.
After my one-on-one conversation with Mr. "No Actionable Evidence" Chilton as a basis for my opinion, all I have to say in response to this article is, "Still playing 'good cop', Bart? Wow! And you're not even getting paid to do it anymore."
Bart - You have NO credibility or integrity IMHO. You are not the voice of the "little guy" at the CFTC. If you were, you would have the answer to that musical question, "What type of investor shorts the market with thousands of contracts in a way that gatuntees the worst possible price for his commodity." when you are ready to answer that question with a measure of sanity and logic, then we will let you buy back your reputation.
Until then, FU and STFU.
" Instead, he laid out the 4 pillars of evidence the CFTC looks for in determining whether manipulation can be proven: intent, size, trading action, and impact on price. "
Take your pick as to which of the four pillars was not met in the case you mentioned. I think they were all met, the bleached freak is a scumbag
The whole fucking system is run by insiders with ZERO accountability to ANYONE......
FUCK YOU Bart Shillton! Sack of worthless crap. Thought you were going to blow the whistle on PM manipulation. Oh that right, there isn't any. LYING FUCKER!
Misdirection's avatar.
Bart: Fuck off and crawl under a rock where you belong.
Blah Blah Blah, and it's gone....
Can't see the maggots in the market because of all the flies swarming the dead economic/monetary bodies
Fuk this pud. He didn't do his job. He thinks everything will be okay because the bankers and his buddies made money in the short term playing their games. I am willing to bet they merely have massive positions that we can't see and they can't unwind. And in the end, it all blows up. His inability to his job has left the system vulnerable.
Bart is a dumbass, a big mouth, a do nothing idiot with stupid hair for an old man
He was just the right person to play along with manipulation.
A figurehead yes-man.
Chilton has shown to be a spineless sell-out. Surprised that PP bothered.
Prior to 1999 the markets reacted to the new internet in the same way they reacted to the new tulips in 1600s Holland.
Markets are the same as they have always been.