Market manipulation on the COMEX and the LBMA скачать в хорошем качестве

Market manipulation on the COMEX and the LBMA

The COMEX (Commodity Exchange, Inc.) is a commodity futures exchange that trades primarily in metals such as gold, silver, copper, and aluminum. It is a subsidiary of the Chicago Mercantile Exchange (CME) Group and is based in New York City. The COMEX provides a platform for buyers and sellers to trade metals futures contracts, which are agreements to buy or sell a specific amount of a commodity at a predetermined price and time in the future. These futures contracts are used by producers, consumers, investors, and traders to manage price risk, speculate on price movements, and gain exposure to commodity markets. The COMEX is regulated by the Commodity Futures Trading Commission (CFTC), and its trading hours are from Sunday evening through Friday afternoon, with daily settlement occurring at the end of each trading day. Its prices are widely used as a benchmark for metals markets worldwide. The LBMA (London Bullion Market Association) is the international trade association that represents the wholesale over-the-counter (OTC) market for gold and silver in London, the largest market in the world for these precious metals. Founded in 1987, the LBMA acts as the coordinator for activities and standards-setting in the global precious metals market, promoting good trading practices and ensuring the transparency and integrity of the market. The association is made up of more than 150 member companies from different countries, including refiners, banks, traders, and other stakeholders in the precious metals industry. The LBMA is responsible for setting industry standards for gold and silver, such as the Good Delivery List, which provides a benchmark for the quality and purity of gold and silver bars traded in the market. It also publishes daily benchmark prices for gold and silver, which are widely used by traders and investors as reference prices for pricing physical metal transactions and derivatives contracts. The market for silver and gold is typically traded through a variety of financial instruments, including futures contracts, options, and exchange-traded funds (ETFs). These instruments allow investors to speculate on the future price of the metals or hedge against potential price fluctuations. The spot price of silver and gold is typically determined through an electronic auction process that takes place on global commodity exchanges such as the London Metal Exchange, the New York Mercantile Exchange, and the Chicago Mercantile Exchange. The auction process involves a continuous matching of buy and sell orders, with the price being set at the level at which the highest volume of orders can be executed. Ways that traders may use to manipulate the prices of silver and gold on the COMEX and LBMA are: Spoofing: This is a strategy in which traders place orders for silver or gold futures contracts with the intention of cancelling them before they are executed. The goal is to create the illusion of demand or supply for a commodity, which can move the price in a desired direction. Once other traders react to the apparent demand or supply, the spoofer cancels the original orders and profits from the price movement. Front-running: This occurs when traders take advantage of knowledge of a large order that is about to be executed by a client. The trader then places his own orders ahead of the client's order in order to profit from the anticipated price movement. Wash trading: This is a process in which traders simultaneously buy and sell futures contracts of silver or gold to create a false impression of demand or supply. This can lead other traders to follow suit, driving prices in a particular direction. Wash trading is illegal in many jurisdictions. Insider trading: Traders with privileged information about silver or gold prices may buy or sell futures contracts based on this information before it becomes public. This can give them an unfair advantage in the market and allow them to profit at the expense of other traders. According to a Bloomberg report, the precious metals business at JPMorgan Chase & Co operated for years as a corrupt group of traders and sales staff who manipulated gold and silver markets for their benefit. According to mining and movie mogul Frank Giustra, the gold price has been manipulated by central bank authorities, particularly the Federal Reserve, for decades as part of a broader scheme to maintain US dollar supremacy in the global monetary system. In 2020, JPMorgan settled a $920 million fine with US authorities on charges of precious metals price manipulation. The case involved allegations of spoofing, a technique used to manipulate prices by placing large orders that are later canceled, in the precious metals futures markets. According to Will Rhind, CEO of GraniteShares, this case confirmed rumors and speculation about metals manipulation for the first time.