In an indictment unsealed on Monday morning, the DoJ charged Michael Nowak, a JP Morgan veteran and former head of its precious metals trading desk and Gregg Smith, another trader on JPM's metals desk, in the probe. Both men were put on leave over the summer as the DoJ's investigation neared its conclusion, and Nowak was previously named in a civil suit brought by the CFTC.
Current and Former Precious Metals Traders Charged with Multi-Year Market Manipulation Racketeering Conspiracy
https://www.justice.gov/opa/pr/current-and-former-precious-metals-traders-charged-multi-year-market-manipulation
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As one who follows the yellow metal, I’ve long suspected some manipulation of this thin market. As the Bloomberg article I’m linking suggests, traders at JPMorgan used “spoofing” to drive prices up or down temporarily. As I understand it, spoofing involves sending through a large buy or sell order early in the day to drive the price up or down while fully intending to cancel the order by day’s end. Nasty.
JPMorgan’s Metals Desk Was a Criminal Enterprise, U.S. Says
https://www.bloomberg.com/news/articles/2019-09-16/jpmorgan-s-metals-desk-was-a-criminal-enterprise-u-s-says