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A financial institution settled CFTC charges of spoofing, manipulation and the attempted manipulation of certain precious metals futures contracts.

Commentary by Bob Zwirb

University of Houston Finance Professor Craig Pirrong argued that, in a recent criminal case , the DOJ miscalculated the amount of harm caused by three commodities traders for spoofing. In analyzing the criminal indictment, Professor Pirrong stated that the DOJ should not have relied upon the notional value of the futures contracts to calculate the amount of harm. According to Professor Pirrong, the actual harm caused by spoofing is represented not by the notional value of the contracts, but by the spread on such contracts that other traders pay or lose the opportunity to earn when they make