Proprietary Trading Firm Settles DOJ and CFTC Spoofing Charges

An Australian-based proprietary trading firm settled DOJ and the CFTC charges for spoofing (see here and here).

According to the DOJ and CFTC, the firm spoofed E-mini S&P 500 futures contracts when trading on the Chicago Mercantile Exchange by entering bids and offers with the intent to cancel them prior to their execution. As a result, the DOJ and CFTC found, the firm caused a total of $464,300 in market losses.

The firm will pay a total fine of $1,000,000 which is composed of a (i) $462,271 Civil Monetary Penalty, (ii) $73,429 Criminal Disgorgement Amount and (iii) $464,300 Victim Compensation Payment Amount. To settle the CFTC charges, the firm agreed to (i) cease and desist from further violating CFTC rules and (ii) comply with the remedial undertakings outlined in the CFTC Offer. Additionally, the firm entered into a deferred prosecution agreement with the DOJ.