Comment Text:
10-005
COMMENT
CL-02271
From:
Sent:
To:
Subject:
Steven Fink
Wednesday, April 7, 2010 3:09 PM
Metals Hearing
Precious Metals Trading Limits and Exemption Enforcement
To Whom it May Concern,
I have previously commented to the CFTC on what appears to be gross violations of existing position limits
on gold and silver derivative contracts, with particular emphasis on the silver futures markets.
I understand that public comment is again being welcomed with regard to the current and ongoing
investigation into the operation and functionality of the precious metals futures markets. Once again Iwould
like to state my appreciation for, and continued encouragement of, this process.
As a very small player in the precious metals markets, I have been subject to what appears to be an unlevel
playing field with regard to the free market NOT setting prices for the precious metals. When one or two
large financial institutions are able to violate existing position limits, specifically holding huge short positions
in silver derivatives, and seemingly halting any rise in the silver (and gold) market by freely and without
restriction selling short more contracts at will, the market does not function as an open and free pricing
mechanism.
I have been dumbfounded by the continual "allowance" of contract limit violations by these 2 large
"shorts" (alleged to be JP Morgan Chase and USBC), whose affect on the metals markets has been to "cap"
any rise in prices, and occasionally cause large and rapid drops in silver prices to "flush out the weak money"
with no real change in market fundamentals.
I once again encourage the CFTC take a stronger position against entities that hold higher positions than
allowed for by current law, and limit all future "speculative" silver contract positions to no more than 1,500
contracts per entity, unless "true and legitimate hedging" is taking place for which exemptions are allowed.
Once again, I appreciate your diligent efforts in this matter.
Sincerely,
Steven Fink, Licensed NV Broker-Salesperson
The Equity Group (www.teglv.com)
702-369-4300
[email protected]
Real Estate Consulting Services
ziggyelman@msn, corn
702-241-5864 (cell)
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