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More documentation of secret futures market trading by central banks
6:54p GMT Wednesday, December 3, 2014
Dear Friend of GATA and Gold:
The man who has blown the whistle on the secret and comprehensive U.S. futures market trading by central banks, Eric Scott Hunsader, founder of the market data company Nanex in Winnetka, Illinois, reports via Twitter today that CME Group, operator of the major U.S. futures exchanges, has extended by a year, to the end of 2015, the discount trading rates it offers to central banks, CME Group's Central Bank Incentive Program:
https://twitter.com/nanexllc/status/540164875717464065/photo/1
Presumably the document disclosing the extension has been filed with the U.S. Commodity Futures Trading Commission, like the earlier filing about the program, dated January 29 this year and posted here --
http://www.cftc.gov/stellent/groups/public/@rulesandproducts/documents/i...
-- and for safety's sake at GATA's Internet site here --
http://www.gata.org/files/CMEGlobexCentralBankIncentiveProgram.pdf
-- though your secretary/treasurer has not yet been able to locate it.
But the CME Group's own Internet site does carry an informational page about the trading program for central banks --
http://www.cmegroup.com/company/membership/files/cbip-faq-dec-2013.pdf
http://www.gata.org/files/CMEGroupCentralBankIncentiveProgramFAQ.pdf
-- and an application form:
http://www.cmegroup.com/company/membership/files/cbip-application-form.pdf
http://www.gata.org/files/CMEGroupCentralBankIncentiveProgramApplication...
The latter two documents show that central banks may trade futures directly with CME Group exchanges or may trade through CME Group clearing members, the latter option of course allowing some potentially profitable front-running of central bank trades.
The CME Group's January 29 filing about the Central Bank Incentive Program asserts that "the resulting increase in liquidity" in the futures contracts "benefits all participant segments in the market."
"Liquidity"? Trade against a central bank, an entity empowered to create infinite money, and potentially you trade against an ocean. No ordinary market participants can trade against that. Rather, secret trading by central banks in all major futures markets is the destruction of all markets.
Note especially that this secret trading in futures markets by central banks still does not seem to have been reported by any mainstream financial news organization.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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