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Dodd Frank

This category contains 48 posts

Deutsche Bank fined $10.25m for spoofing and reporting failures

Last week the CFTC announced here that a settlement has been reached with Deutsche Bank for two enforcement matters relating to spoofing and reporting. The reporting issue is covered by $9m of the settlement. It relates to a period in 2016 when a systems outage occurred for several days, resulting in no reporting for that … Continue reading

Market abuse updates – Corona related and otherwise

There have been several reports around the selling of stocks by Senator Richard Burr, the chairman of the Senate Intelligence Committee as well as  Senator Sen. Kelly Loeffler and others. The allegations are around the selling of the stocks before information was made public about the extent of the spread of the Corona virus, but … Continue reading

CFTC proposes position limits rules

Last Thursday the CFTC unveiled the latest and possibly final proposal for mandatory position limits on certain commodity derivative contracts. This is the latest version of the rules which formed part of the Dodd Frank Act but which so far have not been implemented (see here). The new version proposes several changes to the previously … Continue reading

3rd open anti-abuse meeting and more cases worldwide

This year has already seen one REMIT fine (see here) as well as anti-abuse activity in other parts of the world. For example the Dalian Commodity Exchange in China announced here that 116 abnormal transactions were investigated in Q4 2019. In the US, the ongoing case in the alleged manipulation of where futures continues, as … Continue reading

More US anti abuse activity – precious metals – more spoofing

Following the charging of several individuals earlier this year (see here) an additional trader, formerly of JP Morgan Chase and Co, has been charged with market manipulation in precious metals futures on Comex and Nymex over a period ranging from 2008 to 2016. The notice from the Department of Justice can be found here. The … Continue reading

Anti abuse activity continues in the US

Anti abuse penalties continue to increase in the US following recent fines (see here). These include a settlement of $67.4 m between the CFTC and Tower Research Capital LLC for spoofing. The  CFTC press release can be found here and the order here. This article on the FT web site summarises the case. In commodities, … Continue reading

More developments on wheat futures manipulation case, and more cases

There have been further developments in the case regarding market manipulation in wheat futures in the US (see here). This article on the CNBC web site reports that one of the defendants is suing the CFTC for publishing the press release. This article on food business news reports that the chair and two commissioners of … Continue reading

US cases – Further development in recent case, and another spoofing case

Following the announcement of a $16m settlement for market manipulation in wheat futures in the US earlier this week (see here), the CFTC has withdrawn the press release. This article on the Lexology web site by  Gary DeWaalKatten of Muchin Rosenman LLP  explains that the defendants enforced an agreement not to publicise the details of … Continue reading

$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 … Continue reading

Anti abuse cases worldwide

Vitol is in danger of being fined $6M in the US  for alleged manipulation in California’s power market. The regulator FERC has issued this “Order to Show cause”. An article on the topic can be found here on Reuters.  Also in the US, a firm has been fined $350,000 for engaging in wash sales on … Continue reading