By Kitco News, Contributor (Kitco News) – Analysts have warned for some time that the large build-up of short, or bearish positions, in gold among speculators meant potential for short covering—and that’s just what showed up in the most recent weekly data from the Commodity Futures Trading Commission. …read more
Source: FULL ARTICLE at Forbes Latest
By The Huffington Post News Editors
WASHINGTON, April 10 (Reuters) – U.S. law enforcement officials have reversed a decision to wind down an investigation into how news agencies handle the release of economic data to investors, concerned some sensitive information may have leaked into financial markets, a person familiar with the probe said on Wednesday.
The Wall Street Journal reported earlier on Wednesday that Thomson Reuters Corp, the parent of Reuters News, Bloomberg LP and Dow Jones & Co., a unit of News Corp, were among the media companies under investigation.
The source who spoke to Reuters declined to provide details.
Reuters and the Wall Street Journal reported in January that law enforcement authorities had conducted an investigation into whether media companies facilitated insider trading by prematurely releasing market-sensitive data, but decided not to bring charges.
Media organizations are provided sensitive economic data during “lockups” in which they are not supposed to transmit any information until a set embargo time has lifted.
The Wall Street Journal reported on Wednesday that the FBI had been frustrated the Commodity Futures Trading Commission had not provided data sought by investigators. Citing officials familiar with the probe, it said the CFTC had since agreed to provide trading data and analysis to help the investigation.
“We are not aware of a current investigation nor any embargo violations,” said Ty Trippet, a spokesman for Bloomberg LP. A spokeswoman for Dow Jones, Paul Keve, said the government had not contacted Dow Jones about any criminal investigation. Thomson Reuters spokesman David Girardin declined to comment.
The FBI and CFTC did not immediately respond to requests for comment, while the SEC declined to comment.
Source: FULL ARTICLE at Huffington Post
By Andrew Marder, The Motley Fool
Filed under: Investing
If we’ve learned nothing over the past decade, we’ve learned that on Capitol Hill, Democrats and Republicans hate each other. So I suppose we should all be applauding the unanimous approval of Mary Jo White as the new head of the Securities and Exchange Commission. Apparently not one single U.S. Senator was concerned that, for the last decade, she worked to defend banks like JPMorgan Chase , Morgan Stanley , and UBS .
Maybe that doesn’t matter, and White will be completely unbiased. Even so, the number of cases she’ll have to recuse herself from seems likely to exceed the number she’ll be allowed to hear in her first year, because of the number of personal connections she still holds in the banking world.
The warm embrace of familiarity
Wall Street‘s love of American politics has never been in question, and in the 2012 election, the financial sector gave over $88 million to presidential campaigns, according to the Center for Responsive Politics. The close connection the industry feels with politicians has led to what many have deemed a revolving door between Wall Street and Capitol Hill.
During the financial crisis, then Treasury Secretary Hank Paulson was reported to have held closed-door meetings with his former employer, JPMorgan. Those close ties may lead to weakness in policy and in litigation. Unfortunately, White’s nomination isn’t a breath of fresh air, but just more of the same.
Commenting on the appointment, the Investment Company Institute — a trade group for money markets, which recently tried to sue the Commodity Futures Trading Commission — applauded the appointment. Without making it a black and white issue, shouldn’t we want the people who are working on behalf of the companies that are suing the government to be more upset with these appointments? While they might have to work together, I’d be happier if the Institute had been furious.
What comes next
To paraphrase Senator Sherrod Brown, who initially voted against White’s appointment, I’m not worried that White is a bad person, and I’m not worried she’s going to be manipulated — I’m worried that we’ve made the system of oversight too chummy with those that it’s supposed to oversee.
White will have to recuse herself for a year in cases that involve former clients, but after that, things don’t get much clearer. With a net worth well over $15 million and a decade spent in the financial industry, White is probably going to have to sit out of at least a few cases in which she has a financial interest in the outcome.
While it’s probably not fair to say that there’s a fox in the hen house, it’s not all that far off. I’m reminded of a Far Side cartoon that depicts a dingo farm built right next door to a nursery, with a caption that just reads “Trouble brewing.” That’s what we’ve got now — trouble brewing.
With big finance firms still trading at deep discounts to their historic norms, …read more
Source: FULL ARTICLE at DailyFinance
By Alan Oscroft, The Motley Fool
Filed under: Investing
LONDON — The FTSE 100 has been lifted by rising mining shares today, up 0.45% to 6,305 points as of 8:15 a.m. EDT after the latest inflation figures from China were lower than expected, boosting expectations of a continuation of the country’s stimulus policies.
But not all shares are going up. Here are three constituents of the various FTSE indexes that are lagging today.
ICAP
ICAP shares have dropped 0.17% to 292 pence after the interdealer broker was moved to comment on press speculation regarding an investigation by the Commodity Futures Trading Commission into the possible manipulation of prices for the ISDAfix benchmark for swap rates.
Telling us that it does not make submissions to ISDAfix but is involved in the administration of part of the process, the firm said, “ICAP had no knowledge of the allegations prior to the media speculation, and is investigating them.”
Victrex
Despite a first-half update from Victrex telling us that sales volumes are ahead of last year, the company’s shares have fallen 1% to 1,578 pence. The firm, which makes speciality polymer materials, shipped 1,392 tonnes compared to 1,377 tonnes in the first half of last year. The company describes its order book for April as “robust.”
Despite a small reversal since the middle of March, Victrex shares have had a strong run of late, gaining a third since last July.
Centamin
Shares in Centamin, the Egypt-based gold miner, have dropped 4.8% despite the release of a solid first-quarter production update. Gold production from Centamin’s Sukari mine for the period amounted to a record 87,016 ounces, up 77% on the same period last year and up 2% on 2012’s fourth quarter.
Chairman Josef El-Raghy said that, “This marks a solid start to the year and output remains on target to achieve the 2013 guidance of 320,000 ounces,” and he told us the firm’s planned stage-four expansion is on course for an end-of-year completion.
Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that’s offering a 5.7% yield and could be set for some nice share-price appreciation, too? It’s the subject of our brand-new report “The Motley Fool’s Top Income Share For 2013,” which you can get completely free of charge — but it will only be available for a limited period, so click here to get your copy today.
The article Why ICAP, Victrex, and Centamin Should Lag the FTSE 100 Today originally appeared on Fool.com.
Alan Oscroft has no position in any stocks mentioned. The Motley Fool recommends Victrex. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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Source: FULL ARTICLE at DailyFinance
A former Goldman Sachs trader has surrendered in connection with a federal securities fraud probe.
The FBI says Matthew Marshall Taylor surrendered Wednesday morning in Manhattan. The U.S. attorney’s office said he was awaiting a court appearance.
In November, the Commodity Futures Trading Commission alleged in a lawsuit that Taylor hid a trade that cost his employer more than $118 million.
The agency said he failed to disclose an $8 billion position on a futures contract that came back to hurt the company in December 2007.
The lawsuit did not name Goldman as Taylor’s employer. However, a Goldman spokeswoman confirmed he had worked there, admitted misconduct and was terminated.
The name of his attorney was not immediately known.
By Kitco News, Contributor (Kitco News) – Large speculators cut bullish positions in U.S. gold futures and options, according to the most recent data released by the Commodity Futures Trading Commission, reversing some of buys they registered in the previous report. …read more
Source: FULL ARTICLE at Forbes Latest
By Kitco News, Contributor (Kitco News) – The change in speculative positioning for precious metals was mixed in the most recent reporting period for data compiled by the Commodity Futures Trading Commission, with traders adding to bullish gold and palladium positions, but cutting back on their bullish exposure to silver and platinum.” …read more
Source: FULL ARTICLE at Forbes Latest
By Kitco News, Contributor (Kitco News) – Eyebrows were raised in the gold market this week when a story in the Wall Street Journal said that the U.S. Commodity Futures Trading Commission may look into the operations of London gold and silver fixings. …read more
Source: FULL ARTICLE at Forbes Latest
By Kitco News, Contributor (Kitco News) – Large speculators continued to slash their collective net-long position in gold during the most recent reporting week for Commodity Futures Trading Commission data, with analysts suggesting the next report could show even more retrenchment considering the weakness in prices since the cut-off date for the last report. …read more
Source: FULL ARTICLE at Forbes Latest
By Kitco News, Contributor (Kitco News) – Large speculators trimmed their net-long position in gold during the most recent reporting period for Commodity Futures Trading Commission data. Only unlike most other similar situations in recent years, this time the decline was fueled mainly by traders establishing short, or bearish, positions rather than mainly selling to exit or capture profits on bullish ones. …read more
Source: FULL ARTICLE at Forbes Latest
Royal Bank of Scotland Group PLC (RBS.LN), which is 81% owned by the U.K. Government, said Wednesday it is in late-stage settlement discussions with the U.K. Financial Services Authority, the U.S. Commodity Futures Trading Commission and the U.S. Department of Justice into submissions, communications and procedures around the setting of the London Interbank Offered Rate, or LIBOR, although the settlements remain to be agreed.
Source: FULL ARTICLE at Fox Business Headlines
U.S. House lawmakers are urging the Commodity Futures Trading Commission to give foreign-based banks six more months to comply with new swaps rules.
Source: Fox Business Headlines