Swiss Investigate Seven Banks Over Precious Metals Market Trading
Inquiry involves possible collusion between UBS, Julius Baer, Deutsche Bank, HSBC, Barclays, Morgan Stanley and Mitsui
ZURICH—A Swiss regulator has opened an investigation into precious metals trading at a group of large banks, marking the latest in a line of probes into the rigging of key financial markets that have increasingly spread into the multibillion-dollar trade in metals.
Switzerland’s competition commission, known by its German-language acronym WEKO, said on Monday that it is investigating potential manipulation of prices in the trading of gold, silver and other precious metals at UBS Group AG, Julius Baer Group AG , Deutsche Bank AG , HSBC Holdings PLC, Barclays PLC, Morgan Stanley and Mitsui. WEKO said that it suspects that the banks have manipulated the so-called spread on precious metals, or the difference between bids and asking prices.
Me too, but I sold thursday already near the top and covered everything monday. It,s all about a play for options/futures expiries and first notice which usually means about a 5% downmovement to the PM-metals. The call to short monday I beleive was wrong or in any case against the odds. We will soon find out
The reason we usually have downmovements around expirydays is backwardation (futures are cheaper than spot) which is a sign of scarcity of physical. Backwardation usually preceeds trendchange when the scarcity gets too large. There are about 100 times more shorts than available physical today. What conclusions do you draw of that? If any..