In his recent private subscriber emails, silver expert Ted Butler has been continually harping on the fraud that is high frequency trading (HFT) which dominates the silver futures market.
The CFTC has just confirmed Butler’s analysis, releasing two reports that indicate 90% of gold, silver, and oil futures volume is dominated by HFT.
Gary Gensler was quoted: “The data shows that, in many cases, less than 20 percent of average daily trading volume results in traders changing their net long or net short all-futures- combined positions. The balance of trading is due to day trading or trading in calendar spreads.“
Specifically, the CFTC stated that only 7.7% of silver futures volume can be accounted for by Large Trader Net Volume. (This means that HFT accounts for 92.3% of silver futures)
As if we didn’t already know how silver could fall from $49 to $42 in 5 minutes.
We will include both reports for our readers to examine further.