Gold Manipulators Busted After Zero Hedge Report On Flagrant Gold Spoofing

Tyler Durden's picture

In the aftermath of the Nav Sarao scapegoating farce, one week ago Zero Hedge decided to give the confused CFTC a helping hand and launched a daily series highlighting the constant spoofing and "manipulation" (in the CFTC and DOJ's own words) that takes place in every asset class, but mostly in the E-mini futures ("Dear CFTC: This Is The Market Manipulating "Spoofing" Taking Place In The E-Mini Just Today"). Virtually every day since then we presented the "regulators" at the commodity trading commission a clear example of stock market manipulation, with the exception of Tuesday, when with the exclusive help of Nanex, we showed a clear case of gold spoofing.

This is what we said on April 28:

Here (courtesy of Nanex) are several examples in the June 2015 Comex Gold Futures this morning. All times are Eastern Daylight. In each of these cases, no trades (or a tiny few) executed against the large "spoof" order. You can see how prices were influenced by the sudden appearance (and disappearance) of these large, outsized orders.

 

1. June 2015 Comex Gold

 

Note how large buy and sell orders push prices up and down.

 

 

2. Another set of instances appear about 50 minutes after the first set (shown in chart 1).

 

3. Another set of spoofing instances appear about an hour after the second set (shown in chart 2).

 

You're welcome CFTC — it's the least we can do.

 

Best wishes, 

 

Zero Hedge 

 

Reminder: We won't stop this until you are forced to address the glaring hypocrisy and utter incompetence of everyone involved in the regulation of market microstructure.

Much to our dismay, overnight we learned that while the CFTC continues to be very, very confused and challenged by all those lobby payments by the world's "liquidity providing" HFTs and ignores all documented evidence of manipulation, the Chicago Mercantile Exchange - owner of the futures exchange wheer the bulk of modern manipulation takes place - did read this evidence of manipulation, and decided to immediately take action, suspending two traders for placing the manipulative "spoofing and layering" trades profiled here three days ago which were virtually identical to the ones that got Navinder Singh Sarao into headlines around the world last week. Except, of course, the asset class manipulated was gold. And, perhaps what's far worse, the manipulation sent the price of gold briefly higher.

The names of the perpetrators: perhaps not surprisingly, Heet Khara and Nasim Salim. Extend to Navinder Sarao and a pattern emerges...

This is the full CME release:

NOTICE OF SUMMARY ACCESS DENIAL ACTION: COMEX 15-0103-SA-1 

 

NON-MEMBER:

 

NASIM SALIM 

 

CME RULE: 413. SUMMARY ACCESS DENIAL ACTIONS (in part)

 

A. The Chief Regulatory Officer or his delegate, upon a good faith determination that there are substantial reasons to believe that such immediate action is necessary to protect the best interests of the Exchange, may order that: 1) any party be denied access to any or all CME Group markets; 2) any party be denied access to the Globex platform; 3) any party be denied access to any other electronic trading or clearing platform owned or controlled by CME Group; or (4) any Member be immediately removed from any trading floor owned or controlled by CME Group. 

 

FINDINGS

 

On April 30, 2015, CME Group’s Market Regulation Department (“Market Regulation Department”), through its Chief Regulatory Officer, summarily denied Nasim Salim (“Salim”) direct and indirect access to all CME Group markets, the CME Globex electronic trading platform, any other electronic trading or clearing platform owned or controlled by CME Group, and all trading floors owned or controlled by CME Group. The summary access denial prohibits trading, placing orders, and controlling or directing the trading for any person or entity in any CME Group exchange product. The summary access denial further prohibits the affiliation or business dealing with any member or member firm of CME, CBOT, NYMEX, or COMEX.

 

CME Group’s Chief Regulatory Officer’s summary access denial of Salim was based upon the findings of an investigation conducted by the Market Regulation Department, which revealed that on multiple trade dates during the time period of March 1, 2015 through April 28, 2015, Salim engaged in a pattern of activity in which he repeatedly entered orders or layered multiple orders for Gold and Silver futures contracts without the intent to trade. Specifically, Salim entered these orders or layered multiple orders to encourage market participants to trade opposite his smaller orders resting on the opposite side of the book. After receiving a fill on his smaller orders, Salim would then cancel the resting order or layered multiple orders that he had entered on the opposite side of the order book.

 

Salim introduced Heet Khara (“Khara”), who is also the subject of a summary access denial action, to his first FCM and Salim had an account at the second FCM at which Khara traded in a disruptive manner. Further, it appears that on multiple occasions Salim and Khara coordinated efforts to engage in disruptive activity. In an example from April 28, 2015, Salim entered small-lot orders on one side of the market in Gold futures, after which Khara entered large orders on the opposite side. When Salim’s small orders were filled, Khara canceled the large orders. Salim has not responded to correspondence from the Exchange.

 

The foregoing conduct, as well as Salim’s failure to cooperate with the Exchange, present a good faith determination that there are substantial reasons to believe that such immediate action is necessary to protect the best interests of the Exchanges and the marketplace.  

 

ACCESS DENIAL:

 

Pursuant to Rule 413, this access denial will remain in effect for 60 days, commencing on the effective date below and continuing through and including June 29, 2015, unless the Chief Regulatory Officer or his delegate provides written notice that this access denial will be extended for an additional period of time.

We expect the CFTC and the DOJ to unleash the wrath of god now that the CME showed them how gold manipulation works, something they figured out by looking a this article.

And while we are delighted that yet one more alleged case of gold manipulation is now confirmed, we are curious if the CME, CFTC and DOJ will also prosecute instances of gold manipulation when the ultimate outcome is the price of gold going lower instead of higher, such as the one documented in "Vicious Gold Slamdown Breaks Gold Market For 20 Seconds", "Stop Logic" Gold Slam Was So Furious It Shut Down CME Trading Again" and on countless other occasions most of which have been duly documented on this website.

Finally, we wonder: will the CME, CFTC, DOJ, and FBI pursue as promptly all those instances of constant S&P 500 manipulation and spoofing we profiled over the past week in particular, and over the past 6 years in general? Or was this merely another "Sarao" case when several (non-Caucasian) traders are scapegoated by the regulators, with the naive expectation that investors will suddenly assume the market - in this case that of gold - is no longer rigged?

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NoDebt's picture

"The names of the perpetrators: perhaps not surprisingly, Heet Khara and Nasim Salim. Extend to Navinder Sarao and a pattern emerges..."

Wait, what "patterns" are we talking about?

PAPA ROACH's picture

They won't prosecute the FED......

SuperVinci's picture

Why WONT OBAMA fix the housing market???

smlbizman's picture

they freddy grayed some folks.....

eclectic syncretist's picture

Was it in school suspension or double-secret suspension.  In any case, the boyz are out gang-banging it at 8:30 again this morning, probably singing..

https://www.youtube.com/watch?v=Zj7h9VPEL9E 

Four chan's picture

they did something? i still picture the regulators at sec/cfct as the guy eating the banana in boiler room.

Latina Lover's picture

A few inconsequential minions will be sacrificed to appease the great unwashed masses, while the criminal banksters overlords are well above the law. In fact, they own the law.   This is how things are done in a "too big to fail' aka crony capitalist system.

Pinto Currency's picture

 

 

The gold manipulators are at London's LBMA with bullion banks trading 200 million oz of physical gold a day (except it is only paper).

That is the real manipulation.

http://www.safehaven.com/article/36534/lbma-data-points-to-gold-and-silver-default

Dizzy Malscience's picture

Spoof, the magic algo

Lives by the sea

And frolics in the market

Beyond the CFTC

 

Little Lloyd and Jamie loves the magic code

Which eats the real assets of all the normal folks.

Publicus's picture

Banned from CME for being Indian, so racist.

Pinto Currency's picture

 

 

Silver is the one giving the manipulators fits right now.

The manufacturers have to have it as you can't build a phone or a solar panel with a paper contract.

And the silver producers are losing their shirts at current prices with declining supply from the primary producers.

Manufacturers that use silver are going to take delivery of some of the 3 billion to 5 billion oz open interest of silver at the LBMA and shred that game.

ParkAveFlasher's picture

There are +1 billion people in India & Persia, many who have access to English language resources.  Three of these people have been named, three who have the tools and three who demonstrate deep understanding of the technical pricing methodology of all Western markets.  There are +1 billion people in India & Persia.

DaveyJones's picture

Great work Tyler

amazing how many of these pimps have relic fetish

Leopold B. Scotch's picture

Amatuers.

 

-- Lord Blankfein

Dizzy Malscience's picture

“suspending two traders for placing the manipulative "spoofing and layering" trades” 

How novel.. a CME sandwich.

UnpatrioticHoarder's picture

Heet and Nasim don't belong to Alpha Kappa Krappa, that's their problem

astoriajoe's picture

probably charge Keith neumeyer for conspiracy to form a cartel.

Pinto Currency's picture

 

 

Or propose a law prohibiting mining CEO's from acting as fiduciaries for their shareholders.

eclectic syncretist's picture

The CFTC, like the SEC, functions best as a punch-line. 

Slomotrainwreck's picture

I actually thought I had a dead pixel. Cut that out!

fockewulf190's picture

What a whole shit load of regulators, traders and officials of all kinds are saying about ZH today:

https://www.youtube.com/watch?v=2iEPXKUTrjY

JRobby's picture

When your regulators are born and bred in the industries they are charged with regulating you end up with........NOW

Squid-puppets a-go-go's picture

Lets start a rumour that Jhanet Yhelin is an indian name, maybe we'll get some results. 

New_Meat's picture

she does have high cheekbones, after all.

gmrpeabody's picture

Yes..., speaking of which...

Fun Facts's picture

Speaking of which...

CFTC spokesman has cum stains in his hair from meeting with lord blankfein.

bonderøven-farm ass's picture

Speaking of which......

The first rule of Fight Club is..........:

Kaiser Sousa's picture

can we get some pics of those mother fuckers...

HEY GUYS - YOU'RE DEAD MEN!

JRobby's picture

Fix it? Like sub-prime auto fixed that for a few months?

If the overlords decide stated / no doc should come back, it will come back. Of course the FICO grid has been pounded down by the past 7 years so that will be what "they" have to "work with".

 

 

neidermeyer's picture

I like Chicago ,, who knew it would be more honest than NYC... The SEC prosecution team against Option-One on behalf of the investors came out of Chicago...

I woke up's picture

What do you mean, "you people"?

ghengis86's picture

No, no, no. Can't possibly be like the Weinbergs, Rosenthals or Lebovitz?

We're not allowed to discuss patterns.

venturen's picture

That would be profiling! Madoff, Dimon and Blankfein would be profiling!!!

AIIB's picture

Waddell & Reed, DEAD!

Neidermeyer? DEAD!

Oh regional Indian's picture

Hah....look, all those turrible turbaned tindians, stealing from all the good peoples! Stealing from the tribe IS NOT ALLOWED.

Dammit you Salim man, what! They didn't teach you in trading school or what?
CannoT STeal from the Mastahs, no, never, af paam...

Gotta admit that even in the face of rajaratnam and sarao and the mckinsey guy....them indias don't queet!
https://www.youtube.com/watch?v=KhJjChT1nq4

Oh regional Indian's picture

Good grief man, sarc tags after all these years?

bullchit's picture

Who to trust ORI.
You trust me?
Mug if you do. 'And that's the whole point of the disinfo campaign.
We need to be clever....er.
It's not too hard, because they are pretty stupid, as a battalion.
Stay well ORI.

 

indygo55's picture

I think they are talking about racial profiling. 

Luckhasit's picture

That non americans are getting thrown under the bus maybe?

XqWretch's picture

"What patterns are we talking about"

 

Answer: Their names don't end in Berg or Stein.

rbianco3's picture

Don't forget the name prefixes representing the pattern...

Any surname or surname prefix evoking something desirable or impressive like Gold, Silver, Crystal, Diamond, Wein (wine), Fein (fine), Stern (star), Blumen (flowers), Rosen (roses)

Kirk2NCC1701's picture

"The names of the perpetrators: perhaps not surprisingly, Heet Khara and Nasim Salim. Extend to Navinder Sarao and a pattern emerges..."

The missing pattern is that it's not Putin, the Russians, Iranian or Syrian hackers, or even the Chinese.  I'm shocked.   Shocked, I say.

p.s. Clearly we need moar H1B visas, to keep juicing the 'Markets' and maintain Plausible Deniability.

VinceFostersGhost's picture

 

 

Baby steps.

 

One crook at a time.

 

It's not like we can count on the CFTC.