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Market abuse – Insider trading, $25m spoofing fine in the US and discussion on intra-day trading rules

The long running case against Fabiana Abdel-Malek, a former compliance officer at UBS AG, and Walid Choucair a day trader (see here) has returned a “guilty” verdict. Abdel-Malek was accused of providing Choucair with inside information in person, using a “burner” phone and personal meetings to communicate. The case is reported here on and here on Bloomberg.

Merrill Lynch has been fined $25 million by the CFTC for spoofing in precious metals futures over a period of years on the COMEX exchange. The press release from the CFTC can be found here, the order here, and an article on the case on The Trade News here.

This article on Montel’s web site reports on a discussion about whether holding back generation for the intra-day market by not bidding it into the day ahead market should constitute “market manipulation”. The recent cases around “physical withholding” and related activity (see here) have led to many discussions on the difference between “optimisation” and “manipulation”.


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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