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Gold Manipulators Busted After Zero Hedge Report On Flagrant Gold Spoofing
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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spoofing is okay as long as you remember the golden rules:
spoof equities high, you're not gonna die.
spoof equities low and you've got to go.
(with gold of course it works backwards)
bang gold in the morn, and keep your first born.
And in other news, the PPT has never spoofed ever.
Gold prices are being constantly manipulated to help insure supremacy of the US dollar. For a good overview see: The Hows and Whys of Gold Price Manipulation by Paul Craig Roberts (link: www.paulcraigroberts.org/2014/01/17/hows-whys-gold-price-manipulation).
Do/have the Indians, a 'caucus' in DC - or an organization that 'protects' them from 'unfair' scrutiny under the catch-all of 'racism'...? Doesn't look like it...
Dots or Feathers?
http://www.unitednativeamerica.com/caucus.html
" Reps. Joe Crowley (NY-14) and Peter Roskam (IL-6), co-chairs of the Congressional Caucus on India and Indian-Americans, hosted a high-level exchange between members of the Caucus and several visiting members of the Indian Parliament. "
Well those two guys need to get to work to combat this raging anti-Indianism.
Speaking of price manipulation, a gold standard is a prime example since it puts the taxation authority and power of government behind someone's favorite shiny metal. That's not free market capitalism; that's fascism.
To allow a true free market in private money, inexpensive fiat is the ONLY ethical money form for government debts.
As for price manipulation in general, the government-backed private credit cartel, the banking system, is certainly the cause of much price volatility as purchasing power is lent into existence and then destroyed (plus interest is transferred to those with a lower propensity to spend it) as it is repaid.
Need to flesh out your contentions and accusations for those of us not in the "Trade".
Am I to understand you are a proponent of the fiat currency?
Oh, and that does not quite qualify as fascism but you make your point.
Government IS force; let's make no mistake about that. So, shall that force be used to prop up the price of gold or some other shiny metal or say, my hair clippings (rare, difficult to counterfeit, portable, etc)? I should say not! Use gold or anything else decent but for private debts ONLY. As for government debts, inexpensive fiat is the only ethical choice. Now fiat DOES enjoy some unnecessary advantages over potential private money forms such as the capital gains tax which is measured in fiat and which thus might register a phony real capital gain; those unnecessary advantages should be eliminated.
Your comments are ridiculous.
In the end it was Madoff's sons who turned him in. Much as we'd all like to give ZH the credit, someone who knows Salim must have ratted on him. (An accomplice trying to save his own ass? Co-worker who had it in for him? We'll probably never know.)
Madoff also did a better job of covering his tracks and not getting (too) greedy. You're messing up markets so much even a "fringe blog" notices (and you don't have top-notch connections in Manhattan or DC), you're asking to be Wall Street's next fall guy.
I was just thinking . . .
What if a cabal had formed that runs the world’s central banks that had been able to artificially suppress the price of gold and silver by naked shorting the PM futures market, leasing gold, and depleting national gold reserves, either physically or digitally - at public expense. After all, supporting fiat currencies builds confidence in "the system" and is a public service. What if they used their influence to pressure regulatory agencies to look the other way "for the common good", even though they knew that regulations and their charters precluded this activity.
Let's suppose that one day the Asian, American and European public decides that they have become a bit more distrustful of their governments, their central banks and the fiat currencies that they promote, and decide to put a small percentage of their paychecks each week into gold and silver "just in case". On could hardly blame them for this given the uncertainty in the world. For all we know, something akin to this may already be happening.
Let's also assume that the cabal becomes aware of this trend, and escalates its activity to compensate for this rising tide of activity to the point where "leaks occur" and the regulatory agencies that were supposed to protect against market abuses come under pressure - and eventually their activities become more commonly known to a small but observant segment of the public.
Let's also assume that it would be politically unacceptable to the cabal for the public to become aware of such activity because to have this occur would undermine the "public's trust in the system" and the cabal’s ability to manage the value of fiat currencies “for the common good”.
The cabal, sensing its predicament identifies "spoofing" as a plausible culprit for the activities that it has already engaged in. Something that the general public won't understand that sounds "sinister" and "technical" and beyond their comprehension. It will also be necessary to identify "culprits" that have engaged in this activity to the detriment of the public, otherwise the public might discover what has been going on for some time that is actually “in their best interests".
One day, other asset classes begin to weaken, and lo and behold it is discovered that central banks around the world have been investing in these asset classes all along, raising questions in the mind of the public whether they have been artificially supported. The public believes that now, more than ever, it is wise to allocate some of their savings to precious metals, "just in case".
The cabal, sensing a rising tide of interest in PM's as a safer alternative to their fiat currencies, escalates their market activity, and decides to try to influence politicians to make holding precious metals illegal as a matter of "public safety" much as was done earlier in American history. Bills are introduced before congress to try to stem the tide.
There is public outcry, because the "cat is already out of the bag" and opportunistic politicians sense a rising groundswell of public opinion, finding it politically impossible to make PM ownership illegal (any more than they were able to make gun ownership illegal). Suddenly, it becomes a campaign issue, and politicians, being the creatures that they are, "change with the circumstances" and pander to this new class of voter that distrusts government and central banks. The media attention given to this issue makes PM ownership the new fad, and patriotic Americans view PM ownership as the new war cry to fight the banksters – “the people who got us into this mess in the first place".
Not quite sure what happens next, and it doesn’t really matter anyway . . .
the cabal is way too powerful to ever let that happen;)
You forgot the part where the "change with the circumstances" politician takes a bullet, or the other favorite way to resolve these things, the dreaded small plane crash.
Tyler, I had some fun with my little thought experiment above, but my angst is directed at the cabal, not the good work that you have done in uncovering corruption - which exists in many forms.
Contrary to popular wisdom, Americans taken as a whole, are not stupid people. Jobs in industry grow more scarce with lower adjusted pay, while federal jobs are impossible to lose, pay the highest rates for greedy people who concern themselves with their personal interests only.
By all appearances, the American citizen has been busily buying up PM's with a vengance for about 5 years. PM traders have become adept at keeping transactions completely confidential. Sellers will help you. Point being, there are more physical PM's in the hands of the serfs than the government can guess. Some have been at it for 20 years.
So, the private PM ownership is an unknown factor and in the event the dollar craps or derivative melt downs that exhaust the "Too big to fail"...Whatever, the "Cabal" is in my opinion, not ready for the level of financial preparation the average American has completed or is trying vigorously to achieve. 200 million PM owning Americans that lose faith could create quite a stir.
kudos Tyler[s]. Good result.
YAY bust their balls Tyler.
Zero Hedge, by eliminating good guys, has joined the criminal group of criminals who rip off retail investors, what a shame!
The good guys win one for once but they must have been sacrificial small-time players because entire Wall Street is still an ongoing crime scene. The Dimon and Blankfein cartel gang spree continues. This action is just a babystep in the right direction, but good ya, ZH!
Do it again and again.
I love it when one arm of .gov complains about another arm of .gov.
Lovey kissy and make up you two.
It seems indian fall guys are the cheapest currently.
These guys get thrown under the bus all the time. Google "indian american hedge fund manager sentenced"
Stop manipulating!!!!!!!!!!!!!!!!!!!!!!!!!
The government hates competition.
In my experience, foreign born, especially those from third world countries, don't see a crime when the system allows you to game it. To them, if the system allows them to game it, then it is the systems fault.
Thinking about it, the elite do the same thing.
A friend insisted a couple years ago that gold was in a bubble.
I suggested paper contracts and what may be 'on book' re holdings allows for considerable fuckery, and a desire to keep pms down is in the interest not only of central banks.but banking generally... whichstrongly suggests motive and opp for price suppression...
Looked at me like I just reported a goodhard alien anal probing.
I had also admitted not buying 9/11 mostly due to.building 7 and what seems to me the absolute impossibility of those giant core columns being pulverized at near free fall because of fires from office furniture and the relatively small amount of jet fuel....
I dunno. Its one thing to see consoiracies.
and false flags everywhere... or to scapegoat one group for everything... another to be so mentally obtuse as to be inherently blind to the ongoing possibility that someone is lying for some reason having to do with taking advantage of other people.
So true.
+1 Well, this is it isn't it. The more obnoxious (crazy) the idea, the more unbelievable its truth, and hence, the more likely they will do it again and again and again. I remember, (we) all remember, how way back the truthers on 911 were virtually ostracized. Now, it doesn't seem so crazy (in fact, its not crazy at all), but the worst part, is that even if it was exposed for what it really was, its too late - nobody (MSM, neighbors, whoever), really cares to know. They don't want to know because it would shatter people's entire belief of full trust and faith in the government and that its done - it happened long ago - we've moved on - thus giving license to do it again.....and again.....
Fuck the money changers. END THE ENABLING FUCKING FED.
One word... Busted.
Anyone else tierd of this fucking shit! Throw all the manipulating fuckers off a cliff. Disgraceful is all I can say. Someone is gonna get whacked pretty soon.
Thanks Tyler.
Tyler ever gets involved in pointing out rigged elections, LOOK OUT!
There used to be a shiny veneer over the festering corruption that lay under the surface in the old days.
Now the veneer is gone, and all the local/state/federal institutions are in your face corrupt. The banks launder drug money to the tune of billions and get away with a slap on the wrist. The markets are manipulated and nobody of any real consequence is prosecuted.
I'm trying to be the change I want to see in the world, but without tens of millions of others doing the same....we're fucked.
If the oligarchs had any morality or decency this planet would be sci fi novel status by now. Darn that snake and his delectable apples.
As long as no big US or UK HFT or bank is officially accused of spoofing, that is pure dog and pony show by the agencies...
Well, yeah, this was going to start happening. The thing is, this isn't ...although, in a very real sense it is... about the individuals. They'and all, immigrants are going up against the wall. It would be nice if the world was multicultural society, and if everyone is wealthy, then yeah, it could happen. But right now, right here, money is about to go 'opo' - and whose fault is that ? It's not people who bank money in the West, they're all working for the banks already., this is the sound of wealth being pulled apart - neither side is going to want to share their wealth. America is far more likely to crash the dollar than some idealogical hacklective; everybody elses' knickers would be twisted for months. ...more specifically, this is a poke in the eye towards the asian players for going soft on the new chinese white-man, probably at the expense of their intellectual property rights and as a reminder that there's no rush to come to an accommodation over paper-money
Keep busy working to make money, for those who have the means to conspire to rip you off. Who is going to fight against the conspiracy and blatant lies being peddled by the media? Those with time on their hands have nothing invested. Those with money, time, power are the system. Go back to work and be distracted. Give it to the bankers... Let's rub salt in the wounds with this article. The gold price got slammed after the article and continues to fall, as if in ridicule. The issue is bigger than commodity prices, media and politics. So many people deserve to be rounded up into camps to see the consequences of our actions. Half think they are advocating rights but can't see Statism. If we allow unlawful acts without prosecution it's only a small creep to blow a building up, defy physics, chemistry and common sense. You only need one shred of evidence in contrary to the official story to expose it. We have it by the truck load... sorry that was disposed of. Watching the obvious game of "whack-a-mole" with gold would be amusing if I wasn't vested. I now know that gold is doomed, it can't be allowed to rise. The right hand shorts it and the left hand bids it up, so obvious. Smoke and mirrors aren't needed anymore. Letting gold rise is not an option, so it doesn't matter how much is printed. I didn't realise that gold was so powerful and feared. At all costs gold will be surpressed. The moves are clear, cashless society and NIRP allow the ultimate stripping.
i'm telling you those indians are plundering the world. they control everything! i am not anti indo. the evidence makes it obvious the indonutz want to rule the universe by manipulating the financial markets.
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Well done Tyler!
•?•
V-V
Great, only the tribe can spoof. Be an East Asian and spoof and get lugged like Freddy Gray.
Congratulations Gentlemen!!! Your articles are not only some of the best entertainment with frank and usually humorous commentary, but their essence is providing dagger like, poingnant information that few would ever publish or dare disclose.
What greedy bastard are you looking to fight next?
Here is Central bank algo for monetary policy,economic crisis begin in financial market then Never let the market crash,result:
{spoofing the stock market higher }
{spoofing the Gold market Lower }
{suppress implied vol }
{suppress interest rates}
result "NO CRISIS"
may be it's going to work for eternity 6 years and counting
The madatory sentence should be a + $1000 adjustment on the spot price. That will "fix" em.
You need to send in a report on SPY. That thing is spoofed to Hell and back. Yesterday even on the Down side, but EVERY freaking day the Bid is Stuffed and Spoofed and Layered. A populat HFT Bid on the size is 1,141 and 1,030. It must have flashed thousands of times today.
So effing obvious even a blind man would see it.
ZeroHedge nails the fuckers yet again. The PM stacks are only getting larger around my household. Why not? My PM's never send me shit in the mail or phone me to death to sell me shit I don't need; they just sit there minding their own business. That works for me.
The only way a rogue trader gets shut down is if hes not one of the "chosen" like the TBTF banks.
A 1$ per order tax (doesnt matter if order is canceled).
+ a 1000$ per order tax if you place more than X amount of orders in a day as an individual entity.
Shut down all HFTS and let markets be markets.
Its supposed to be a buy and sell.
Not a pretend to buy , cancel the order, pretend to sell, buy instead kind of market.
If the only reason you are placing orders is to push the price up or down, then your orders are FRAUD.
If the only reason you are placing orders is to scalp other bidders who are on a slower connection than you (because you have a direct fiber skynet link to the market across the street) that should be illegal like ticket scalping for sporting events.
"..address the glaring hypocrisy and utter incompetence of everyone.."
sweet
Great work guys! This gold market manipulation is enough to turn any gold investor into a manic depressive. I'm sure spoofing is the norm rather than the exception!
Great work guys! This gold market manipulation is enough to turn any gold investor into a manic depressive. I'm sure spoofing is the norm rather than the exception!
Dear Tylers: a thing i ask myself since the first post of this kind of manipulation: how much money is made per day like this? cant you add this in the posts please? (im not a trader, havent got a clue;)
How much forensic evidence does it take before everyone can see that the CFTC are pursing a policy of willful ignorance?
They are not a legitimate oversight committee, that much is clear. Actions > Words.