JPMorgan Chase & Co. and HSBC Holdings PLC were sued by an investor claiming they manipulated silver futures and options prices in violation of U.S. antitrust law.
The investor alleges that starting in March 2008, the banks colluded to suppress or maintain prices of silver futures so call options on the futures would expire as worthless, according to the complaint filed Wednesday in federal court in Manhattan.
The banks placed “spoof” trading orders, or the “submission of a large order which is not executed but influences prices and is then withdrawn before it reasonably can be executed,” according to the complaint.
The suit, which seeks class action, or group, status, was filed by Peter Laskaris, a New York resident who traded in silver futures and claims damages based the collusion.
Joseph Evangelisti, a spokesman for New York-based JPMorgan, declined to comment. HSBC spokeswoman Lisa Sodeika didn’t immediately return a call seeking comment.
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