Federal Court Fines Defendants $2.36 Million for Alleged Spoofing in Gold and Silver Futures

A federal court in New York fined two residents of the United Arab Emirates for their alleged involvement in a spoofing scheme in the gold and silver futures market.

The CFTC alleged that between February 2015 and April 2015, the defendants regularly placed larger aggregate orders for gold and silver contracts on the Commodity Exchange, Inc. opposite smaller orders, and then canceled the larger orders after the smaller orders were executed. The defendants allegedly placed the larger orders because they intended to cancel them before execution in order to profit from the smaller trades.

The Court Order imposes permanent trading and registrations bans and requires the defendants to pay a combined total of $2.36 million.