With expiration looming and prices at a 30-year record, cocoa traders complain to NYSE Liffe that rules have allowed a suspected market manipulator to go too far.
The letter, reportedly sent last Friday, alleges that the NYSE Liffe cocoa market lacks the necessary transparency and control to prevent a single fund or other financial institution to corner the market. Indeed, with the shorts on the other side of those trades now forced to buy into a record-high market to unwind positions ahead of expiration, prices are likely to rise even further.
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