Friday, August 26, 2016

CME Group suspends gold, natural gas trader for spoofing

Latest: Corruption and Money Laundering.

CME Group suspends gold, natural gas trader for spoofing.


Aug 22 CME Group Inc on Monday suspended from its markets a futures trader who used the manipulative practice known as spoofing and was suspected of money laundering, the exchange operator said.
CME, which owns Comex, the Chicago Mercantile Exchange and other markets, barred Andrey Sakharov from trading for 60 days and could extend his ban, according to a disciplinary notice.
Contact information for Sakharov could not immediately be found.
On multiple dates starting last month, he entered electronic orders in CME's gold and natural gas markets that he did not intend to trade, the disciplinary notice said.
The practice of placing bids to buy or offers to sell contracts with the intent to cancel them before execution is known as spoofing and is illegal. It is used to create an illusion of demand in markets, so that spoofers can influence prices to benefit their market positions.
Last month, a U.S. judge sentenced trader Michael Coscia to three years in prison for spoofing on futures markets run by CME and rival Intercontinental Exchange Inc. He was the first person criminally convicted of spoofing.

No comments:

Post a Comment