The CME Group has attributed a 10-hour disruption in global futures market operations to a “cooling issue.” However, stakeholders in the silver industry are raising concerns about potential misconduct by the U.S.-based organization, suggesting that it may be attempting to assist a trader who needed to deliver approximately 12,450 tonnes of silver.
These allegations follow a surge in silver futures, which reached a record high of $56.775 an ounce on the CME. Over the weekend, spot silver was quoted at $56.41 per tonne. The precious metal has seen a remarkable increase of 95% in 2025. In India, March silver futures closed at ₹1,75,340 per kg, also a record high.
The CME Group, which oversees the Globex Futures and Options markets that account for 90% of futures, options, and commodities trading volume, stated that trading was halted due to a cooling issue at its CyrusOne data center in Illinois.
In response, trader and commentator ‘The Happy Hawaiian’ expressed skepticism on X (formerly Twitter), arguing that data centers typically have backup air-conditioning systems, making the idea of a “cooling issue” highly dubious. Eric Yeung, an analyst focused on the geopolitical and economic effects on precious metals, echoed these sentiments, noting that the cooling issue appeared to benefit those with short positions—traders selling silver at high prices in anticipation of future price declines.
Yeung further noted that information from a Chinese source indicated an authorized participant needed to deliver 400 million ounces (approximately 12,441 tonnes) of physical silver.
The Silver Academy, an organization dedicated to promoting awareness about the importance of silver, commented on the situation, suggesting that the trading halt linked with the authorized participant’s demand indicates a failure in the usual assertion that “there is always metal.” They claimed that rather than letting a default occur, parties involved manipulated the situation and are now attempting to devise a response.
In a subsequent update, an unnamed Chinese financial analyst remarked that 156 lots were short-covered on the night of November 27, implying that a speculator was reluctant to deliver physical silver. The analyst stressed that there is now a shortage of physical silver with diminishing inventory.
Dario, co-founder of Synax, reported that a commodity trader dismissed the CME’s “glitch” explanation as implausible. According to this trader, the CME is buying time for market makers to reposition themselves and avoid drastic price fluctuations.
The Silver Academy portrayed the situation as a critical attempt to escape market realities, pointing out that when new highs were recorded, trading activity ceased entirely. The organization noted that during the glitch, while paper trading was stalled, physical trading continued unabated, with bullion sites raising premiums and market participants negotiating for tangible supplies.
Commodity analyst and mining executive David Jensen summarized the ongoing silver supply challenges, stating that years of sustained deficits make the continuation of supply flow increasingly unlikely. Although 54 million ounces of silver were transferred from New York, Shanghai, and Switzerland to London, this was insufficient to alleviate the ongoing supply shortage.
The Silver Academy emphasized that December 31, 2025, has become a crucial date, as market positions will crystallize, revealing the true state of affairs. They assert that banks, exchanges, and regulators will need to make critical decisions about how to manage these developments in the time leading up to this deadline.
