J.P: Morgan increases total Gold/precious Derivatives market share from 71% to 74% of overall total Gold/precious Derivatives (up 14.5 $Billion in Q3)

http://www.occ.treas.gov/ftp/release...

Comment:

TABLE 9 Q3 2008, See also Graph 8

Table 10 shows that the JPM market share stakes in Commodities and Commodity Equities derivatives is also dominant ($571 Billion up $124 Billion from the previous quarter up +28% or 67% of the total), enough to at the same time also be able to completely control the Xau and the HUI Gold miners indexes and a couple of other indexes.

As we’ve frequently observed, a Gold /Silver Equities takedown usually precedes a Gold / precious metals takedown this isn’t surprising. One has to control the metals end the miners to control the precious metals and commodity trends. One can take it for granted that they are heavy and permanently short (and increasing).

As JPM operates as an arms length government entity its is doubtful the CFTC will seriously challenge these market dominant positions e.g. through market manipulation, antitrust or whatever other charges. Bringing some more transparency to markets where most transactions happen under the table would be a hard blow to JPM with their $87'000 Billion derivatives portfolio or about 8 times U.S. GDP. Being on the wrong side of the bets by 1% ($870 Billion) would be almost impossible to absorb let alone bigger mark to market assessments. They appear to be playing for time. No one should be above the law.