barclays bank fined £26m for gold fixing, page-28

timber1956

you bring up several interesting points which i feel warrants additional discussion

1. selling options appears to be a bread and butter operation for some players who have even described the activity as 'generating income' due to the oft-quoted fact that the vast majority of options expire worthless

however, history has shown many large players going bust SUDDENLY from precisely such activity, even after 'booming' for many years prior from the very same activity

will history repeat again and again in the future?


2. i think the story around Mr Plunkett is bigger than just him protecting his position

if one looks at the gold chart around jun 28, 2012, it was actually THE LOW before a substantial increase in POG for the next few months

i am suspecting that there were many others 'protecting their positions' (specifically bearish positions) which subsequently suffered large reversals

now, the question tht is begging is, how many others engaged in the same tactics as Mr Plunkett at the same time? i would find it quite unbelievable if he was the only one indulging in illegalities due to bad positioning

the other question would be: who was the client who had such weight tht the bank actually paid it wht was due? would the same have occurred with a 'lesser' client?

how about all other traders affected? any potential for class action?

i do find it interesting that only a few million is required to move prices in such a manner or is tht another misrepresentation of what actually happened?