Thursday, March 25, 2010
The CFTC (Commodities Futures Trading Commission) is meeting today to discuss the trading of futures and options in metals markets and the possible use of prophylactics, but not the kind of prophylactics that you were probably thinking of as a simple search on "CFTC prophylactics" reveals this term is used frequently to describe action that the group might take to protect market participants from one thing or another.
You can watch or listen to the proceedings here and the two charts below showing the volume of gold and silver trading on exchanges around the world are from first panel that just included two CFTC officials. The second panel is now underway.
As shown above, most of the gold futures trading is done in London via the LBMA (London Bullion Market Association), the world's leading gold market for centuries.
In contrast, more than half of the silver futures trading occurs at the COMEX in New York as shown below where JP Morgan traders have a big presence.
It's possible that things could get interesting this afternoon as GATA Chairman Bill Murphy will be part of a panel discussion and, according to this BNN report from late yesterday, he may have a surprise or two in store in the form of someone who has come forward to reveal some sort of untoward market activity that might be aimed at suppressing prices.