Here’s proof that Deutsche Bank and UBS traders rigged the silver market


“In a curious twist, the settlement letter revealed that the the former members of the manipulation cartel turned on each other “, and that Deutsche Bank would provide documents involving other precious metal riggers. Namely:” In addition to valuable monetary consideration, Deutsche Bank also agreed to provide cooperation to the plaintiffs, including the production of instant messages and other electronic communications, as part of the settlement. In the Complainant’s view, the cooperation that will be provided by Deutsche Bank will greatly assist the Complainants in pursuing their claims against the unregulated defendants. “

Overnight, we finally got a glimpse of what this “production” contained, and according to documents filed by the plaintiffs in the class action lawsuit, what Deutsche Bank provided as part of its settlement was nothing less than ” smoking gun “ proof that UBS Group AG, HSBC Holdings Plc, Bank of Nova Scotia and other companies rigged the money market. The claim, as Bloomberg first noted , was filed Wednesday in a lawsuit in Manhattan federal court filed in 2014 by individuals and entities that bought or sold futures contracts.

In the documents handed over by Deutsche Bank and shown below, traders and shippers have been captured the coordination of transactions before a daily phone call, manipulating the cash market for money, conspiring to correct the spread on the money offered to customers and using illegal strategies to rig prices .

“Complainants are now able to litigate directly, ‘ smoking gun proof ‘, including covert electronic discussions involving silver traders and depositors at a number of financial institutions, a multi-year, well-coordinated and high-profile plot to rig prices, “the plaintiffs said in their file.

The final pieces of evidence are essential because, as the complainants add, the new regime ” far exceeds the alleged plot earlier As a result, the litigants seek leave to file a new complaint with the additional allegations, i.e. to demand even more reparations from the defendants who have not yet settled, and possibly even more. evidence of an ongoing market rigging. Their proposed complaint expands the case beyond the four banks initially sued to include claims against units of Barclays Plc, BNP Paribas Fortis SA, Standard Chartered Plc and Bank of America Corp.

Representatives from UBS, BNP Paribas Fortis, HSBC, Standard Chartered and Scotiabank did not immediately respond to out of hours emails seeking comment on the allegations. Barclays and Bank of America declined to comment immediately.

Deutsche Bank documents show, among other things, how two UBS traders communicated directly with two traders at Deutsche Bank and discussed ways to rig the market . Traders shared information about client order flows, triggered client stop-loss orders incorrectly, and engaged in practices such as impersonation, all intended to destabilize the price of the market. ‘money before the fix and result in forced buying or selling. This is also what has led on so many occasions to the infamous “slam” of previous metals, when out of nowhere billions of notional contracts emerge, usually with the intention of selling, to stop any bullish moment in the metals. precious.

“UBS was the third largest market maker in the cash silver market and could directly influence the prices of silver financial instruments based on the volume of money traded,” claim the plaintiffs. “Conspiring with other big market makers, like Deutsche Bank and HSBC, has only increased UBS’s ability to influence the market.”

Some examples of the cats cited are shown below. In the first example, a chart between DB and HSBC traders in which an HSBC trader says “I really want salt if[worm”theothertradersays”Let’sbreaktogether”[ver”towhichtheothertradersays”Let’sgoandsmashittogether”[ver”auquell’autretraderdit”Allonslecasserensemble”[ver”towhichtheothertradersays”Let’sgoandsmashittogether”

Another chat transcript from May 11, 2011 reveals a Deutsche Bank trader telling a UBS trader that the cartel “WAS THE MONEY MARKET” (sic) based on comments from outside traders to which UBS responds, referring to the silver market “we broke it good”, leading to the following lament ” Fuck UBS now you make me regret not joining . “

Finally, for all traders who are wondering what happened to their stops following dramatic price movements, here is the answer: A June 2011 conversation between a UBS trader and a DB trader boils down to this: ” if you have any stops… who are you going to call… STOP BUSTERS “

If the plaintiff’s request for an expanded trial is granted, we would expect a lot more fireworks as other banks rush to sort it out on their own and provide even more documentary evidence of unprecedented manipulation of the precious metals market, until there was only one bank left, apparently the one slammed with the biggest fine of all, possibly even leading to jail time for some of the market riggers.

The iShares Silver Trust ETF ( NYSE: SLV ) fell $ 0.05 (-0.31%) to $ 16.18 per share in pre-market trading on Thursday. Since the start of the year, the biggest money-related fund has gained 23.05%.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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