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When a high school graduate told GATA's conference
in Washington six years ago that "there are no markets anymore, just
interventions" --
http://www.gata.org/node/6241
-- he didn't know the half
of it.
For Zero Hedge reports tonight --
http://www.zerohedge.com/news/2014-08-30/its-settled-central-banks-trade...
-- that Eric Scott Hunsader,
founder of market data research firm Nanex in
Winnetka, Illinois (http://www.nanex.net), which exposed the algorithm trading responsible for the flash crash
in gold futures on January 6 this year --
http://www.zerohedge.com/news/2014-01-08/proof-golds-latest-slam-was-not...
-- has discovered documentation at the U.S.
Commodity Futures Trading Commission showing that CME Group, operator of
various futures markets, including the New York Commodity Exchange (Comex), has been providing to central banks outside the
United States, since at least July 1, 2013, a program of discounts for
trading equity market, bond market, and commodity market futures, including
gold and silver futures.
The documentation consists of a letter,
dated January 29 this year, from CME Group's managing director and chief
regulatory counsel, Christopher Bowen, notifying the CFTC of changes to the
discount trading program for central banks. In his letter, Bowen insists,
"The program's incentive structure does not impact the exchanges'
ability to perform their trade practice and market surveillance obligations
under the CEA [Commodity Exchange Act]. The exchanges' market regulation
staff will monitor trading in the program's products to prevent manipulative
trading and market abuse."
The letter is posted at the CFTC's Internet site
here --
http://www.cftc.gov/stellent/groups/public/@rulesandproducts/documents/i...
-- and, for safety's sake, at GATA's Internet site
here:
http://www.gata.org/files/CMEGlobexCentralBankIncentiveProgram.pdf
Of course the CME Group letter does not say that any
central banks have actually been using the trading discount program. But it
does confirm that the trading mechanism has been established, and presumably
it would not have been established and maintained if there had been no
interest among central banks. In any case more documentation is available, as
the CME Group letter says: "The program is subject to the exchanges'
record retention policies which comply with the CEA."
That central banks are active in the currency and
government bond markets long has been grudgingly acknowledged. GATA has
documented extensively the surreptitious interventions of central banks in
the gold market:
http://www.gata.org/taxonomy/term/21
And now the CME Group filing with the CFTC indicates
that central banks are surreptitiously active in the markets comprehensively,
bringing their power of infinite money creation to bear against ordinary
market forces and ordinary investors -- without even telling them.
Those who expect the stock market bubble to pop may
want to reconsider as long as central banks are prepared and equipped to buy everything.
This dispatch will be sent separately to
representatives of most major Western financial news organizations. Will even
one of them decide that comprehensive surreptitious market intervention by
central banks is news?
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Join GATA here:
Casey Research 2014 Summit
Hill Country Resort and Spa
San Antonio, Texas
Friday-Sunday, September 19-21, 2014
http://www.caseyresearch.com/summit/2014-fall
Canadian Investor Conference
Sheraton Centre Toronto Hotel
Toronto, Ontario, Canada
Thursday-Friday, September 25-26, 2014
http://cambridgehouse.com/event/31/canadian-investor-conference-toronto-...
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
Wednesday-Saturday, October 22-25, 2014
https://jeffersoncompanies.com/landing/noic2014?IDPromotion=614011014520...
Mines and Money London
Business Design Centre
London, England, U.K.
Monday-Friday, December 1-5, 2014
http://www.minesandmoney.com/london/
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