Loading ...August 4, 2014
The CFTC Commitment Of Trader Data Is Rigged After All
Myself and few others – primarily GATA – have been suggesting for quite some time that contract open interest data the CME reports for the Comex is rigged. While certain newsletter peddlers adamantly maintain the reports are accurate and honest in order to preserve their franchise, there’s nothing like a the CFTC imposing a fine on JP Morgan for fraudulently reporting “large trader” data:CFTC Charges JP Morgan With Reporting Fraud.
JP Morgan has finally been caught and sanctioned for playing games with its position reporting in gold and silver in order to hide the true magnitude of its unhedged short positions on the Comex. That JP Morgan does this is obvious to anyone who has spent several years studying and trading the Comex.
After all, how are the CFTC’s COT reports compiled? They come from big banks who are the primary Comex market-makers, of course. There’s no independent audit of the numbers and reports sourced from the banks and submitted to the CME and the CFTC. It’s a “trust us” job – wink wink.
IF JP Morgan et al were to be honestly and accurately reporting the data published by the CME and CFTC, it would be the ONLY area of their financial reporting that is not completely engulfed with fraud.
Anyone who chooses to believe otherwise either has ulterior motives – like making a lot of money selling newsletters – or still believes in Santa Claus.