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JPMorgan Trader Spoofed Gold Trades?

serfserf Member Posts: 9,217 ✭✭✭✭
edited August 2022 in Politics

Here is just one way a common trader could manipulate gold prices,probably more than one way however Most central banks sit on tons of the stuff and one day they will play with it on a new deal scenario like FDR did in 1933.

I wonder if they can do the same with their paper fictional funny money too? Like the repo markets you think?


Gregg Smith clicked his computer mouse so rapidly to place and cancel bogus gold and silver orders for Bear Stearns Cos. and later JPMorgan Chase & Co. that his colleagues would joke that he needed to put ice on his fingers to cool them down afterward, or that he must be double-jointed.

The goal of spoofing was to trick the rival computers into buying or selling to benefit JPMorgan’s position, by using a large volume of bogus orders to create the false market impression, he said.

“Those trades were deceptive,” Trunz said of the thousands of spoof orders the desk placed over the years. “They were used to bring out a reaction from those algorithms to get what we needed done.”


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