SLAP ON THE WRIST: Scotiabank Pays $800,000 To Settle CFTC Gold & Silver Spoofing Charges

Scotiabank gets a slap on the wrist from the CFTC. What does it mean for the gold & silver markets? Here is some insight…

Coming from Reuters, we read that Scotiabank has settled charges filed by the CFTC for engaging in spoofing.

From the article we learn:

The regulator said in a statement that traders on Scotiabank’s precious metals trading desk placed orders to buy or sell futures contracts on the Chicago Mercantile Exchange with the intent to cancel the orders before execution.

The traders engaged in the spoofing from at least June 2013 through June 2016, the agency said. Spoof orders create the impression of greater buying or selling interest than otherwise would have existed, it said.

Scotiabank said in a statement it was pleased to have resolved the issue.



“In recognition of its self-reporting and cooperation, the commission imposed a substantially-reduced penalty,” James McDonald, the CFTC’s director of enforcement, said in the statement.

Scotiabanks was “pleased” to have resolved the issue with a “substantially-reduced penalty”.


More like laughing all the way to the bank.

They spoofed the market, for three full years. That is all we know. Regardless, how much money was made off of their spoofing, and how many investors in gold and silver have been hurt by these practices?

Worse yet, this settlement will be something the MSM will look to in order to say, “well, the gold and silver markets may have been manipulated, but the gold and silver markets have been cleaned up now!”.

We know that is not true.

This settlement will also be something the manipulation deniers will look to in order to say, “well, this was the case of a couple of rogue traders acting on their own for just one bank, and it has all been cleaned up now”.

And again, We know that is not true.

The manipulation continues, day in and day out.

Here are some quick resources to help understand the manipulation.

First off, we have some tagged-pages which may be helpful. Check out these tags right here on Silver Doctors:

Also, for those who may be new to gold & silver, here’s a quick definition.

You see, often times we talk about the “cartel”.

That’s the word I use.

Some use the word “cabal”, some say “boys”, and some say “market riggers”. Those could all basically be words which refer to the same thing. Generally, “cartel” refers to the Exchange Stabilization Fund, the Fed, and the agents of both taking their marching orders from the the ESF and the Fed. The cartel would also include individuals that have influence over either the ESF or the Fed.

Additionally, what also is amazing, because it is right there, plain as day on the US Treasury Department’s website, is a little page stating what the ESF does, which is basically intervene in any market they see fit, at any time, and for any reason.

Seriously – check it out for yourself using this link. That’s just the start of that rabbit hole.

Back to the original topic of this article – the Scotiabank settlement.

What does this settlement resolve?

Nothing for the bank.

The $800,000 settlement is chump change for a bank that likely made some serious fiat profits by manipulating the gold & silver markets for three full years, using just one form of manipulation.

This settlement also does nothing for the manipulation in the grand scheme of things.

The manipulation will continue until it can’t.

That is the bottom line.

We don’t know exactly when the cartel will be no longer able to continue the current manipulation of gold & silver at current prices, so if you have your stack ahead of time, you are in a good position, but if you plan on buying your stack once the broader stock market starts crashing, or when it seems like we’re getting closer to the time when the gold and silver manipulation may be ending, well, that’s not the best game plan because being one minute too late could be very costly.

The analogy is having your ticket and taking a seat before the train leaves the station. It is an appropriate analogy.

Then there’s the whole issue of global resets. Resets happen, and we’re long overdue, but that is a different can of worms that I won’t get into in this article.

Here’s the thing – Gold & silver have already bottomed when taking “premium creep” into account. This is especially true for people who buy less than 500 ounces at one time, which I assume is most people.

And just yesterday, I said gold & silver may surprise to the upside this week.

And I still think they will.

Stack accordingly…

– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at Paul’s Twitter is @Paul_Eberhart.