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Dodd Frank, MAR, REMIT

$16m fine in the US, other US fines, and a fine alternative in Northern Ireland

Kraft Heinz Co and Mondelez International Inc have been fined $16 million in the US by the CFTC for market manipulation. The press release can be found here and the order here. The companies are accused to have built up significant positions in wheat futures, with no intention of taking delivery thus sending a false price signal to the market. The penalty is about three times the companies’ alleged gain. This article on the Reuters web site describes the penalty.  This post on the DCM blog also discusses the penalty. It also has a description of some recent fines by ICE for spoofing and disruptive trading.

The Utility Regulator of Northern Ireland has closed an investigation against SSE Airtricity Gas Supply (NI) Limited and SSE Airtricity Energy Supply (NI) Limited into rule breaches relating to  numerous licence obligations, such as the provision of information to customers and compliance with industry codes of practice. As a result, Airtricity has agreed to pay £450,000 to charity. The notice can be found here.

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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