The Bank of Nova Scotia was charged by the Commodity Futures Trading Commission with multiple acts of spoofing in gold and silver futures between June 2013 and June 2016. Traders placed orders to buy or sell precious metals futures contracts with the intent to cancel the orders before execution, the CFTC said.
The CFTC fine was $800,000, as the CFTC said the penalty was substantially reduced because the bank reported the conduct to the agency.
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Far from criticizing the bank, the CFTC's announcement yesterday about the misconduct actually praises the bank for having reported the misconduct itself:
The CFTC's enforcement director, James McDonald, says:
"This case is another great example of the significant benefits of self-reporting and cooperation. We expect market participants to take proactive steps to prevent this sort of misconduct before it starts. But, as this case shows, there is a strong incentive for market participants to quickly and voluntarily report wrongdoing when it is discovered and cooperate with our investigation, as the Bank of Nova Scotia did here. In recognition of its self-reporting and cooperation, the commission imposed a substantially-reduced penalty."
lynnsa10 replied the topic: Market Sentiment shifting
Central Banks are big buyers 1st half of this year and now Poland joins in
Poland has embraced gold this summer, purchasing the yellow metal at a pace not seen in 20 years, according to the International Monetary Fund data.
Taking advantage of lower prices, the European country added nine metric tons to its gold reserves in July and August, which marked the biggest acquisition since 1998. The purchase is valued at around $355 million based on current gold prices.
“The NBP [National Bank of Poland] reserve management policy is based on diversification,” mBank SA senior economist Marcin Mazurek told Bloomberg. “Perhaps the basic criterion is the low price of the gold, combined with the expectation for higher global inflation.”
Even though the country’s gold holdings are still not even in the top 30, the purchase bumped the Polish bullion reserves to the highest level since 1983. Poland’s gold reserves now stand at 112.3 metric tons.
Gambler replied the topic: Market Sentiment shifting
Short Squeeze May Send Gold Price Spiking
October 2 (King World News) – John Ing: “The reason the gold market is spiking today is because of the crisis in Italy. This raises the prospects of the EU falling apart. Eric, if we see another $10 surge, we will see a major scramble that will create a major short squeeze in the gold market…
If the US moves to weak dollar policy, very positive for Gold
"The real risk is that we have broad-based unravelling of global trade and currency cooperation, and that is not going to be pretty," said Jens Nordvig, Wall Street's top-ranked currency strategist for five years running before founding Exante Data LLC in 2016. "Trump's rhetoric over the last 24 hours is certainly shifting this from a trade war to a currency war." ...
The Treasury Department declined to comment when asked whether the U.S. was entering a currency war.
The greenback will likely continue to suffer as investors heed Trump and back out of long dollar wagers, according to Shahab Jalinoos, Credit Suisse Group AG's global head of FX trading strategy. Hedge funds and other speculators are the most bullish on the currency in over a year, according to the latest data from the Commodity Futures Trading Commission.
"It has now been virtually defined as a currency war by the U.S. president, given that he explicitly suggested foreign countries are manipulating exchange rates for competitive purposes," Jalinoos said. "The barrage of commentary will likely force the market to scale back long dollar positions."