JP Morgan Chase has admitted to using a tactic known as “spoofing” to manipulate precious metals and treasuries markets over an 8 year period and will pay a $920 million dollars in fines and penalties.
Per Nasdaq.com, the charges against JPMorgan and its subsidiaries were for “manipulative and deceptive conduct and spoofing that spanned at least eight years and involved hundreds of thousands of spoof orders in precious metals and U.S. Treasury futures contracts.”
Stephanie Avakian, director of the SEC’s Division of Enforcement said in a prepared statement “J.P. Morgan Securities undermined the integrity of our markets with this scheme.”
She added “Their manipulative trading of Treasury cash securities created a false appearance of activity in the market and induced other market participants to trade at more favorable prices than J.P. Morgan Securities would have otherwise been able to obtain.”
Will Rhind, CEO of GraniteShares said “Throughout my career, there have always been these kind of mutterings of manipulation of the gold market. A lot of people that were talking about that were really written off as fringe or conspiracy theorists [with an] extreme view, and those people have been right.”