JPMorgan and HSBC Holdings Plc were hit with two lawsuits in late October by investors who accused them of conspiring to drive down silver prices, and reaping an estimated hundreds of millions of dollars in profit. [ID:nN27259071]
Since then, open interest in U.S. silver futures SIc1 has declined by about 15 percent, while prices have surged to 30-year peaks.
The banks, among the world's largest, were accused of manipulating the market for COMEX silver futures and options contracts from the first half of 2008 by amassing huge short positions in silver futures contracts that are designed to profit when prices fall.
The lawsuits were filed one day after the Commodity Futures Trading Commission proposed regulations to give it greater power to thwart traders who try to manipulate prices. The CFTC began probing allegations of silver price manipulation in September 2008, but the paper said in two previous reviews of the silver market, the CFTC has dismissed claims of manipulation. For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment