CFTC Files Complaint Charging Floor Broker with Violating a CFTC Order Relating to NYMEX Crude Oil Futures Contracts

The CFTC filed a civil enforcement complaint against a floor broker for violating an administrative order, entered by the CFTC on November 25, 2013, which prohibited the floor broker from trading outright futures contracts in any market during the closing period for a period of two years.

According to the CFTC complaint, on May 22, 2014 during the closing period, the floor broker violated the CFTC order by performing the type of commodity futures trading that he agreed would be prohibited.

The CFTC order charged the floor broker and SHK Management, LLC ("SHK") with attempting to manipulate the price of Light Sweet Crude Oil futures contracts on the New York Mercantile Exchange and violating intraday spot-month speculative position limits on two days in 2008. The CFTC order required the floor broker and SHK jointly to pay a civil monetary penalty, permanently banned both parties from trading in any Crude Oil markets, and imposed a two-year ban on trading outright for any product or financial instrument regulated by the CFTC during the closing period. The CFTC filed this complaint to enforce the 2013 CFTC order, and the complaint seeks additional civil monetary penalties against the floor broker personally.

See: CFTC Complaint; CFTC Press Release.
See also: CFTC Order from 2013.