Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan
Gold Price Back Below $1,800! - 10th Sep 21
The Inflation/Deflation debate wears on… - 10th Sep 21
Silver Price seen tracking Copper prices higher - 10th Sep 21
The Pitfalls of Not Using a Solicitor for Your Divorce - 10th Sep 21
Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
This Boom-Bust Cycle in US Home Ownership Should Give Home Shoppers Pause - 9th Sep 21
Stock Market September Smackdown Coming Next? - 9th Sep 21 - Monica_Kingsley
Crazy Crypto Markets How to Buy Bitcoin, Litecoin for Half Market Price and Sell for TRIPLE! - 8th Sep 21
Sun Sea and Sand UK Holidays 2021, Scarborough in VR 180 3D! - 8th Sep 21
Bitcoin BTC Price Detailed Trend Forecast Into End 2021 - 8th Sep 21
Hyper Growth Stocks - This billionaire is now using one of our top strategies - 8th Sep 21
6 common trading mistakes to avoid at all costs - 8th Sep 21
US Dollar Upswing, S&P 500 and Nasdaq Outlook - 7th Sep 21
Dovish Assassins of the USD Index - 7th Sep 21
Weak August Payrolls: Why We Should Care - 7th Sep 21
A Mixed Stock Market - Still - 6th Sep 21
Energy Metals Build Momentum; Silver & Platinum May Follow - 6th Sep 21
What‘s Not to Love About Crypto Market Fireworks - 6th Sep 21
Surging US Home Prices and Gold – What’s the Link? - 6th Sep 21
S&P 500 Rallies To New All-Time Highs – Are The Markets About To Break Higher? - 5th Sep 21
Bond Conundrum - Boom or Bust for Gold? - 5th Sep 21
How the sale of a Sting CD sparked an Entire Online Industry - 5th Sep 21
Three Years of Fresh Thinking With Scott Dylan and Dave Antrobus - 5th Sep 21
Bitcoin Bear Market Trend Forecast 2021 and Model Crypto Portfolio Buying Levels - 4th Sep 21
The Most Actively Traded Companies on the Toronto Stock Exchange - 4th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Swiss Regulator: “Clear Attempt To Manipulate Precious Metals ” … “Particularly Silver”

Commodities / Gold and Silver 2014 Nov 12, 2014 - 03:37 PM GMT

By: GoldCore

Commodities

Further proof of manipulation of gold and silver prices - if any were needed - came overnight as  Switzerland’s financial regulator (FINMA) found “serious misconduct” and a “clear attempt to manipulate precious metals benchmarks” by UBS employees in precious metals trading, particularly with silver.


Bloomberg report

Switzerland’s regulator found “serious misconduct” by UBS AG (UBSN) employees in precious metals trading, particularly with silver, as part of its review of the bank’s foreign-exchange business.

Electronic chats played a “key” role in the improper conduct in foreign exchange and precious metals trading, the Swiss Financial Market Supervisory Authority, or Finma, said in a statement today. It found front running, when traders profit from advance knowledge about a transaction expected to influence prices, over client orders for silver.

It is believed that traders manipulated the gold and silver bullion fixes. The benchmarks known as the gold and silver "fix" were used to ascertain gold prices twice daily and silver prices once a day for the precious metals industry and market participants including investors. 

Along with other precious metal benchmarks, it has come under increased regulatory scrutiny since the Libor manipulation revelations in the foreign exchange market in 2012.

Reuters report

Swiss regulator FINMA said on Wednesday that it found a clear attempt to manipulate precious metals benchmarks during its probe of precious metals and foreign exchange trading at UBS 

"The behavior patterns in precious metals were somewhat similar to the behavior patterns in foreign exchange," FINMA director Mark Branson said in a conference call with journalists. "UBS has both precious metals and foreign exchange desks under combined leadership, therefore it's not that surprising that one has similar behavior patterns."
"But we have also seen a clear attempt to manipulate fixes in the precious metal market."

The Swiss watchdog said earlier that a recent probe showed UBS tried to manipulate foreign exchange benchmarks and staff acted against client interests. It ordered the bank to hand over 134 million Swiss francs ($139 million) in a forex probe.

UBS said in its annual report in May that it had widened an internal probe of its foreign exchange operations to include precious metals trading.

The gold fix was until this year set by five banks via a twice a day conference call. Similar mechanisms existed for silver, platinum and palladium. UBS was not among the fixing members.

Deutsche Bank said in January it was putting its gold fix seat up for sale, but failed to find a buyer, leaving the fixing process with only four members.

Members later announced they would disband the gold fix, which will be replaced later this year by an electronic gold platform operated by U.S. bourse Intercontinental Exchange (ICE).

Switzerland's financial regulator said it would limit bonuses for some UBS employees, as it ordered the bank to disgorge 134 million Swiss francs (138.98 million US dollars) (87.26 million pound) in a foreign exchange trading probe.

The Berne based regulator also said it had begun enforcement proceedings against 11 former and current unnamed UBS employees.

FINMA said variable pay for UBS forex and precious metals employees globally would be limited to 200% of their basic salary for two years. Hardly a deterrent to criminal financial behaviour.

The regulator also said it would introduce an approval process for other high earners at UBS's Swiss investment bank. UBS is also obliged to automate at least 95% of its global foreign exchange trading, FINMA said.

The order by the Swiss regulator is bigger than the 59 million francs in profits demanded in 2012 in order to settle a case over the rigging of the London Interbank Offered Rate (Libor).

Separately, the UK fined five major banks 1.1 billion pounds ($1.75 billion) for “failings” in currency trading in a landmark settlement after a scandal that has roiled the world's largest market.

In what appeared like a coordinated move, the Commodity Futures Trading Commission (CFTC) said it was fining five banks $1.4 billion for attempted manipulation in the foreign exchange market.

The CFTC said traders had used private online chat rooms to communicate. They had disclosed confidential customer order information and trading positions, and altered their positions accordingly to "benefit the interests of the collective group".

Gold in U.S. Dollars - 10 Years (Thomson Reuters)

Gold prices have been under increased regulatory scrutiny this year. Barclays Plc was fined 26 million pounds ($43.8 million) in May for manipulating gold prices. The bank claimed the “failures” were due to lax internal controls that allowed a trader to manipulate gold prices rather than a systematic attempt to manipulate the gold price.

Banks continue to get mere slaps on the wrists for breaking the law. Very few traders or bankers have faced prosecution or jail time. Instead, regulators levy completely ineffectual fines that are tiny when compared to their annual bonuses and indeed profits. 

As long as this continues, we will continue to see criminal behaviour and banks attempting to manipulate and rig markets at the expense of investors and other financial market participants.

Such behaviour is creating huge distortions in markets and will likely contribute to another financial crash and crisis.

Get Breaking News and Updates on the Gold Market Here 

MARKET UPDATE

Today’s AM fix was USD 1,163.25, EUR 934.41 and GBP 731.83 per ounce.
Yesterday’s AM fix was USD 1,151.25, EUR 927.90 and GBP 726.43 per ounce.

Gold climbed $16.40 or 1.43% to $1,165.80 per ounce yesterday and silver rose $0.18 or 1.16% at $15.74 per ounce.

Gold in EUR - 1 Year (Thomson Reuters)

Spot gold was last at $1,163.00/1,163.80 per ounce, up $2 on Tuesday’s close and trading within a $9 intraday range.

Physical demand for bullion coins and bars has increased and investor interest has picked up marginally after the metals became oversold. The next resistance level is seen at the previous support at $1,180. 

The dollar was last at 1.2460 against the euro, up 0.15 cents on concerns that the ECB may introduce fresh monetary easing measures to kick-start the Eurozone’s stumbling economy. Euro gold is well supported at €900/oz and has recovered to €934/oz.

Swiss regulator FINMA said today, "we have also seen a clear attempt to manipulate fixes in the precious metal market (see above)" The Swiss watchdog said earlier that a recent probe showed UBS tried to manipulate foreign exchange benchmarks and staff acted against client interests. It ordered the bank to hand over 134 million Swiss francs ($139 million) in a forex probe.

The London Bullion Market Association (LBMA) will stop producing its gold lending rates data from January 30th as banks shy away from the risks of providing financial benchmarks, a source close to the situation told Reuters today. 

The Gold Forward Offered (GOFO) rate is used as a benchmark for dealers, central banks and others to swap gold for dollars. The LBMA currently sets GOFO each day by polling its eight major bank dealers, including UBS and JP Morgan on the rates at which they are prepared to lend gold.

Gold in GBP - YTD 2014 (Thomson Reuters)

The Bank of England cut its growth forecasts and noted inflation could fall under 1% within months as a renewed slump in the euro area puts pressure on the U.K. economy.

Today's inflation report by BoE Governor, Mark Carney, forecast expansion of 2.9% in 2015 and 2.6% in 2016. That’s below previous forecasts of 3.1% and 2.8%  in August. 

They also said inflation will return to the 2% target in three years, nearly validating investors’ expectations that rate increases may not begin for almost another year. Gold in sterling remains attractive due negative real interest rates and the risk of a renewed bout of sterling weakness in the coming months.

This update can be found on the GoldCore blog here.

Yours sincerely,
Mark O'Byrne
Exective Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in