Us Regulators Focus On Silver Price

2021-02-02   |   by CusiGO

US regulators pay close attention to reddit wallstreetbets group’s user driven business. The sharp rise in silver prices, which hit an eight year high on Monday, prompted the US Commodity Futures Trading Commission to monitor the silver market for signs of fraud. On Monday, silver revalued 11.5% against Friday to more than $30 an ounce, although its value fell 5% on Tuesday morning.

“The CFTC is closely watching recent silver market activity,” its chairman, rostin Behnam, said on Monday “The Commission is working with regulators, exchanges and other stakeholders to address any potential threats to the integrity of the silver derivatives market and to remain vigilant against possible fraud and manipulation in these markets.”

In addition, late Monday, the Chicago Board of trade, including Plata futures, raised margins on commodity contracts by 18 per cent to ensure hedging in the face of volatile markets. This is usually between 3% and 12%. As a result, silver prices fell 8.4% from Monday afternoon to Tuesday morning.

The warning by US commodity market regulators follows a warning issued by the securities and Exchange Commission on Friday after Wall Street stocks, such as gametop or AMC, soared. This has prompted the committee to express concern about extreme volatility in the trading prices of certain stocks.

In this regard, the US Securities and Exchange Commission warned that “extreme fluctuations in stock prices may cause investors to suffer rapid and serious losses and undermine market confidence”. Therefore, it warned that it would strive to protect investors and maintain a fair market, Orderly and efficient, promote capital formation.

“The Commission will closely review actions taken by regulated authorities that may harm investors or unduly inhibit their ability to trade certain securities (…), We will take action to protect retail investors when it turns out that abusive or manipulative business activities are prohibited by federal securities laws, “he said.