Ronan Manly: CME stays silent on cause of Comex silver price glitch

Section:

By Ronan Manly
Bullion Star, Singapore
Friday, July 7, 2017

Silver futures prices on the COMEX futures trading platform briefly plummeted at approximately 7:06 a.m. Singapore time yesterday, with the price for the front month (most active) September silver contract falling from a US$16.06 quote down to a low of US$14.34 all within a 1-minute interval. The futures price then recovered nearly all its losses in the subsequent 2-3 minute period. High to low, this COMEX silver futures contract saw its price fall by just over 10.7 percent before rebounding nearly 11 percent.

During this time when the COMEX price crashed, there was nothing fundamentally happening in the wider financial markets, or indeed in the physical silver market, to justify these price gyrations in COMEX silver futures prices. Which all goes to show that the COMEX "paper" futures silver prices is completely detached from the physical silver market, and that COMEX silver futures prices have no anchoring in the real silver market. ...

What caused this momentary price plummet in the COMEX silver futures is not clear. This is because the CME Group, operator of the COMEX futures platform, has provided no explanation for these price gyrations. Possible causes could include market illiquidity, deliberate manipulation, a trading error or errors, or algorithmic trading programs triggering stop losses or inducing abnormal trading patterns. ...

... For the remainder of the report:

https://www.bullionstar.com/blogs/ronan-manly/cme-stays-silent-cause-com...



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