The U.S. Commodity Futures Trading Commission (CFTC) has closed its investigation into alleged misconduct in the silver market, and won’t be bringing any charges as a result.
The CFTC said Wednesday its enforcement division has closed an investigation that was publicly confirmed in September 2008 concerning silver markets. In general, it doesn’t publicly comment on investigations, however, given that it has been publicly confirmed, it decided that it’s appropriate to inform the public that the investigation is no longer ongoing.
“Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets,” it says.
Back in 2008, the CFTC confirmed that it was investigating complaints about silver prices, and whether the silver futures contracts traded on the Commodity Exchange, Inc. (COMEX) were being manipulated. “The complainants generally asserted that because the prices for retail silver products, such as coins and bullion, had increased, the price of silver futures contracts should have also experienced an increase,” it says, adding that it was alleged that large shorts in the silver market were responsible for lower futures prices.
The CFTC says that it exhaustively investigated these complaints, and others, consuming more than 7,000 staff hours. And, that its market oversight division carried out surveillance of the silver market alongside the investigation.
It stresses that its enforcement division “will not hesitate to use its authority”, including new authority under U.S. regulatory reforms, to bring market manipulation charges. And, it says it will pay awards to eligible whistleblowers.