Comment Text:
10-005
COMMENT
CL-00018
From:
Sent:
To:
Subject:
Charlie Sitzes
Friday, May 7, 2010 6:33 PM
Metals Hearing
Illegal Market Manipulation
Dear Commissioners
The information below came from a Treasury Department report.
This is a crime in progress.
But the real shocker is in silver. The precious metals (silver) derivatives of all maturities increased by a mind-
boggling 37 percent, from $9.29 billion to $12.8 billion. This came principally from increases in the less-than-one-
year maturities where the JPM holdings increased 34 percent to $6.76 billion and HSBC holdings increased 58
percent to $4.7 billion. (Despite the radically different percentage increases, interestingly the increases at JPM
and HSBC were identical in dollar amounts at $1.7 billion.)
This increase in notional value of silver derivatives represents approximately 220 million ounces, which is 125
percent of the global production of silver during the quarter -- and that is only the increase. The entire notional
value represents 106 percent of annual global production.
What possible legitimate purpose could such a monstrous derivative position be serving with a maturity of less
than one year?
The only purpose I can think of is for manipulation of the silver market. I am not a regulator but I can't think of any
"mitigating factors" for that.
Just as the SEC had enough information to convict Bernie Madoff and instead sat on it, thus damaging their
reputation, you too are subjecting yourselves to the same kind of riducule by not acting on information supplied to
you by not only third parties, but the Treasury Department itself.
When will you release information concerning your progress in addressing these problems?
Thank you
Charlie Sitzes
Bloomington< IN
