KITCO NEWS - The chatter in the financial world Friday was silver's mysterious flash crash, which saw the metal drop 10% within minutes. The Chicago Mercantile Exchange (CME) came out and described the move as a 'glitch' and one veteran trader is not too happy with that explanation. The problem, as Echobay Partners' Vince Lanci explained it, is with high-frequency trading. "A marketplace where high-frequency trading is allowed to be used to be predatory,' he told Kitco News. 'This is by no means an attack on the CME because they're doing everything they can to mitigate a situation that is really out of control.' However, he is bothered by the fact that exchanges and regulatory agencies are not preventing these types of moves from happening in the marketplace, but rather just reacting to them. 'We know these things exist. We know they're out there and they're killing the markets.' Silver prices closed in negative territory for its 5 th consecutive week, settling the day at $15.371 an ounce.
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This article is commentary by an independent contributor.