Whistleblower News: Wave of CFTC Spoofing Actions
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US regulators to fine UBS, Deutsche Bank, HSBC for 'spoofing' and manipulation: Sources
The U.S. derivatives regulator is set to announce it has fined European lenders UBS, HSBC, and Deutsche Bank millions of dollars each for so-called spoofing and manipulation in the U.S. futures market, three people with direct knowledge of the matter told Reuters.
The enforcement action by the Commodity Futures Trading Commission (CFTC) is the result of a multiagency investigation that also involves the Department of Justice (DoJ) and the Federal Bureau of Investigation (FBI) — the first of its kind for the CFTC, the people said.
The fines for UBS and Deutsche Bank will be upward of $10 million, while the fine for HSBC will be slightly less than that, the people said, without providing exact figures.
Spokesmen for HSBC, Deutsche Bank, and UBS declined to comment.
Spoofing involves placing bids to buy or offers to sell futures contracts with the intent to cancel them before execution. By creating an illusion of demand, spoofers can influence prices to benefit their market positions. Read more »
Lawmakers in three states push bills to allow off-label promotion
Over the past month, lawmakers in three states — Missouri, Colorado, and Mississippi — have introduced bills that would allow drug makers to promote their medicines for so-called off-label uses, so long as the information given to doctors is truthful.
The efforts come less than a year after Arizona adopted such a law, making it the first state in the U.S. to permit off-label promotion. The bills also arrive amid ongoing pressure on the Food and Drug Administration to loosen regulations for off-label promotions, which is one of the most contentious issues to roil both the agency and the pharmaceutical industry. Read more »
CFTC Files Eight Anti-Spoofing Enforcement Actions against Three Banks (Deutsche Bank, HSBC & UBS) & Six Individuals
The Commodity Futures Trading Commission today announced, in conjunction with the Department of Justice and Federal Bureau of Investigation’s Criminal Investigative Division, criminal and civil enforcement actions against three banks and six individuals involved in commodities fraud and spoofing schemes. Read more »
CFTC Orders Deutsche Bank to Pay $30 Million Penalty for Manipulation, Attempted Manipulation, and Spoofing In the Precious Metals Futures Markets
The Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against Deutsche Bank AG (DB AG) and Deutsche Bank Securities Inc. (DBSI) (collectively, DB), requiring DB to pay a $30 million civil monetary penalty and to undertake remedial relief. The Order finds that from at least February 2008 and continuing through at least September 2014, DB AG, by and through certain precious metals traders (Traders), engaged in a scheme to manipulate the price of precious metals futures contracts by utilizing a variety of manual spoofing techniques with respect to precious metals futures contracts traded on the Commodity Exchange, Inc. (COMEX), and by trading in a manner to trigger customer stop-loss orders. Read more »
CFTC Orders UBS to Pay $15 Million Penalty for Attempted Manipulation and Spoofing In the Precious Metals Futures Markets
The Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against UBS AG (UBS), requiring UBS to pay a $15 million civil monetary penalty and to undertake remedial relief. The Order finds that from January 2008 through at least December 2013, UBS, by and through the acts of certain precious metals traders on the spot desk (Traders), attempted to manipulate the price of precious metals futures contracts by utilizing a variety of manual spoofing techniques with respect to precious metals futures contracts traded on the Commodity Exchange, Inc. (COMEX), including gold and silver, and by trading in a manner to trigger customer stop-loss orders. Read more »
CFTC Orders HSBC Securities (USA) Inc. Pay $1.6 Million Penalty for Spoofing In the Precious Metals Futures Markets
The Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against HSBC Securities (USA) Inc. (HSBC) for engaging in numerous acts of spoofing with respect to certain futures products in gold and other precious metals traded on the Commodity Exchange, Inc. (COMEX). The Order finds that HSBC engaged in this activity through one of its traders based in HSBC’s New York office.
The Order requires HSBC to pay a civil monetary penalty of $1.6 million, to cease and desist from violating the Commodity Exchange Act’s prohibition against spoofing, and to take specified steps to implement and strengthen their training, systems, and controls to detect and deter spoofing by HSBC personnel in the futures markets. In accepting HSBC’s offer of settlement, the CFTC recognizes the bank’s cooperation during the Division of Enforcement’s investigation of this matter. Read more »
CFTC Charges Andre Flotron with Spoofing and Engaging in a Deceptive and Manipulative Scheme in the Precious Metals Futures Markets
The U.S. Commodity Futures Trading Commission (CFTC) announced the filing of a civil enforcement action in the U.S. District Court for the District of Connecticut against Andre Flotron, of Switzerland, charging him with engaging in a manipulative and deceptive scheme and spoofing in the precious metals futures markets on a registered entity. Read more »
CFTC Charges James Vorley and Cedric Chanu with Spoofing and Engaging in a Deceptive and Manipulative Scheme in the Precious Metals Futures Markets
The Commodity Futures Trading Commission (CFTC) announced the filing of a civil enforcement action in the U.S. District Court for the Northern District of Illinois against James Vorley, a U.K. resident, and Cedric Chanu, a United Arab Emirates resident, charging them with spoofing and engaging in a manipulative and deceptive scheme in the precious metals futures markets.
James McDonald, the CFTC’s Director of Enforcement, commented: “Spoofing undermines the integrity of our markets and gives those engaging in the unlawful conduct an unfair advantage over law-abiding market participants. The CFTC is committed to identifying and prosecuting this type of misconduct. As this case shows, the CFTC will aggressively pursue not only companies but also individuals who engage in this type of misconduct in our markets.” Read more »
CFTC Charges Trader Krishna Mohan with Spoofing and Engaging in a Manipulative and Deceptive Scheme
The Commodity Futures Trading Commission (CFTC) today announced the filing of a federal court enforcement action in the U.S. District Court for the Southern District of Texas against Krishna Mohan of New York City, New York, charging him with spoofing (bidding or offering with the intent to cancel before execution) and engaging in a manipulative and deceptive scheme in the E-mini Dow ($5) futures contract market on the Chicago Board of Trade and the E-mini NASDAQ 100 futures contract market on the Chicago Mercantile Exchange. Read more »
CFTC Charges Jiongsheng Zhao with Spoofing and Engaging in a Manipulative and Deceptive Scheme
The Commodity Futures Trading Commission (CFTC) today announced the filing of a federal court enforcement action in the U.S. District Court for the Northern District of Illinois against Defendant Jiongsheng Zhao, of Australia, charging him with spoofing and engaging in a manipulative and deceptive scheme in the E-mini S&P 500 futures contract market on the Chicago Mercantile Exchange (CME).
The CFTC Complaint alleges that from at least July 2012 through at least March 2017, Zhao repeatedly engaged in manipulative or deceptive acts and practices by “spoofing” (bidding or offering with the intent to cancel the bid or offer before execution). On thousands of occasions, Zhao placed an order that he wanted to execute and thereafter entered a larger order on the opposite side of the market that he intended to cancel before execution. In placing these larger spoof orders, Zhao intentionally or recklessly sent false signals of increased supply or demand designed to trick market participants into executing against the orders he wanted filled. Read more »
CFTC Charges Jitesh Thakkar and Edge Financial Technologies, Inc. with Aiding and Abetting Spoofing and Manipulative and Deceptive SchemE
The Commodity Futures Trading Commission (CFTC) today announced the filing of a federal court enforcement action in the U.S. District Court for the Northern District of Illinois, charging Jitesh Thakkar of Naperville, Illinois, and his company, Edge Financial Technologies, Inc. (Edge), with aiding and abetting spoofing and a manipulative and deceptive scheme in the E-mini S&P futures contract market on the Chicago Mercantile Exchange (E-mini S&P).
James McDonald, the CFTC’s Director of Enforcement, stated: “In its effort to root out spoofing from our markets, the CFTC will work vigorously to hold accountable not only the individuals who engage in the spoofing, but also those who produce and sell the tools designed to spoof. The CFTC appreciates the innovative promise of financial technology in our markets, but when those technologies are designed to violate the law, the Division of Enforcement will step in to protect our markets and market participants from that unlawful activity.” Read more »
