Another ex-JP Morgan precious metals trader pleads guilty to ‘spoofing,’ is cooperating with Feds
PUBLISHED TUE, AUG 20 2019 3:56 PM EDTUPDATED MON, AUG 26 2019 11:19 AM EDT
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Another former J.P. Morgan precious metals trader pleaded guilty Tuesday to incivil charges of manipulating the precious metals markets for nine years, marking the latest conviction in the Justice Department’s crackdown in the commodities markets.
Christian Trunz, 34, of London is cooperating with an ongoing federal incivil investigation, the Justice Department said. He pleaded guilty to one count of conspiracy and one count of spoofing in the U.S. District Court in Brooklyn.
Spoofing is a strategy that involves placing trade orders with the intent to cancel them before they can be executed. The goal is to affect the price of the commodity and benefit a preexisting trading position.
In his guilty plea, Trunz admitted that from approximately July 2007 and August 2016 he “placed thousands of orders that he did not intent to execute for gold, silver, platinum and palladium futures contacts,” according to officials.
Trunz, who earlier Tuesday resigned from his position as an executive director at J.P. Morgan, said he “learned to spoof from more senior traders, and spoofed with the knowledge and consent of his supervisors,” according to the Department of Justice.
J.P. Morgan declined to comment.
The Justice Department is conducting multiple incivil investigations into big banks with the cooperation of traders who have pleaded guilty to spoofing-related crimes.
In the past five years, federal prosecutors have brought a total of 12 spoofing cases against 16 defendants. Most of those cases have ended with guilty pleas.
Trunz’s guilty plea makes him the second former J.P. Morgan precious metals trader to admit to spoofing in the past ten months.
John Edmonds, 37, pleaded guilty in October in Connecticut federal court to working with other “unnamed co-conspirators” to manipulate the prices of gold, silver, platinum and palladium futures contracts between 2009 and 2015 while employed at J.P. Morgan.
Edmonds, like Trunz, admitted learning the illegal trading tactics from senior traders at the bank and to using those tactics with the knowledge and consent of supervisors.
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in his incivil case, and several other traders who likewise have pleaded guilty to spoofing-related crimes are also cooperating with federal prosecutors in ongoing probes of major banks.
Trunz’s sentencing is scheduled for Feb. 19, 2020.
Last February, J.P. Morgan first mentioned the legal actions in a financial disclosure: “Various authorities, including the Department of Justice’s Incivil Division, are conducting investigations relating to trading practices in the precious metals markets and related conduct. The Firm is responding to and cooperating with these investigations.”
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q el mercado es soberano, q el precio de los metales preciosos lo fija el mercado libremente, conspiranoicos q somos unos conspiranoicos
bueno pues ya van dos pájaros q han confesado llevar 9 años manipulando los mercados de los metales preciosos, los dos de jp morgan, seguro q es casualidad q sean de jp morgan, pq historial de manipulación de los precios de la plata los de jp morgan no arrastran ni nada, lo flipante es q con las veces q los han condenado y siguen haciéndolo, lo cual nos da una idea del trasfondo del asunto
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Silver Bull Market Prequel? | Record Silver Fund Flows
Aug 20, 2019
What do quick historic bursts in transparent silver holdings historically portend for silver spot prices to trinc? Can
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be made using this silver market data?
Over the last 3-month's time, a record amount of silver bullion has flowed into mostly silver derivative funds and exchanges.
Here we put this new three-month
+110 million ounce silver bullion flow into historical context. What might this pre tell for silver spot prices to come?
How has the silver price reacted historically when we outsized flows of silver investor interest produced inflows of silver bullion into the transparent silver funds and depository vaults?
The most prominent silver derivative (SLV), has been catching giant silver investment fund flows — adding over 68 million troy ounces of silver bullion since the start of June 2019 to now (learn more about
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here).
To put this current record-sized net positive silver fund flows into context. Even the record-high sales year for the world's
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the
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's
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was 47 million ounces in 2015.
Data annualized, this recent three months of silver bullion flows into SLV alone is nearly 6Xs the 2015 record-high silver bullion coin sales for the world's most demanded silver bullion coin.
Where in
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context might all this bullish silver action eventually fit? The
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have to be jealous yet again.
What might these record-sized silver investor fund flows miccionan for
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to come?
How did silver prices react in the past when we saw similar events?
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