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Crypto, MAR, REMIT

Large manipulation fine in agricultural trading and more

The spate of anti abuse activity has continued since our last post (see here).

The CFTC has settled with Lansing Trade Group LLC for $3.4 million, in a physical-financial manipulation case in agricultural trading. The CFTC press release can be found here and the order here.  This is another example of the use of physical contracts and positions to manipulate financial prices. There have been several examples of this practice being fined for in the past in different commodities.

The CFTC has also been focusing on spoofing cases. This article by Jay Biondo of Trading technologies on the Tabb Forum looks at this trend and the legal basis behind it. In a related topic, this article, also on the Tabb Forum, by Michael Friedman of Trillium, looks at the challenges of surveillance of crypto trading for spoofing.

The topic of anti abuse activity, and cases, will likely continue over the coming months.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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