The DOJ and CFTC charged several precious metals traders with
manipulating the markets for precious metals futures contracts.
According to the DOJ, three precious metals traders, including
one formerly employed by an undisclosed U.S. bank ("Bank
A"), engaged in a "multi-year market
manipulation racketeering conspiracy." Between approximately
May 2008 and August 2016, the defendants allegedly engaged in the
spoofing of gold, silver, platinum and palladium futures contracts.
Additionally, the DOJ found that the defendants defrauded clients
who had bought or sold "barrier options" by manipulating
the price towards a point that would make Bank A money on the
option (i.e., barrier running) or away from a point at
which Bank A would lose money on the option (i.e., barrier
defending).
