Comment Text:
10-005
COMMENT
CL-00771
From:
Sent:
To:
Subject:
Eddy Kwa
Monday, April 12, 2010 1:25 PM
Metals Hearing
Position limits for precious metals.
Dear Sir or Madam;
Thank for the opportunity to comment on the issue of position limits for precious
metals. I commend CFTC for holding the public hearing on March 25, 2010.
During the meeting, you were also made aware that bullion banks try to hedge
their short positions in futures market by going short on OTC market which was
then questioned by Chairman Gensler. It was then corrected by the gentleman
who said that they were actually go long in OTC. Just like any investigation, it is
easier to reveal the truth and then try to cover up by correcting the statement. I
believe the same thing happened and all it takes is for CFTC to send qualified
auditor to look at JP Morgan's book and see what position they take on OTC
market.
Personally I have been investing in silver and gold by going long and I have made
gains and losses. I am also aware of the manipulation takes place and it has
affected my decision sometimes to trade as it is not a level playing field. If only I
have the luxury of the 'inside' information from someone like Andrew MaGuire,
then I may try go along with the bullion bank and short the market.
I hope that for once the regulator will do the right thing and protect small
investors instead of allowing the big banks to do whatever they want. I hope we
have learned from Enron, Madoff, Stanford where regulator failed to protect the
public.
Please establish a speculative position limit in COMEX silver of no more than 1500
contracts. Please restrict any hedging exemptions from those limits to legitimate
hedgers. Please stop the levels of concentration in COMEX silver futures that have
been experienced over the past few years on the short side of the market.
Sincerely,
Eddy Kwa
