CFTC Charges UAE Residents with Spoofing in the Gold and Silver Futures Markets

The CFTC filed a civil enforcement action (the "Complaint") in the U.S. District Court for the Southern District of New York (the "Court") against two United Arab Emirates residents (the "Defendants") for "spoofing" in the gold and silver futures markets by placing bids and offers with the intent to cancel them before execution.

The Complaint alleged that the Defendants, both individually and collaboratively, regularly placed larger aggregate orders for gold and silver futures contracts on the Commodity Exchange, Inc. opposite smaller orders and canceled the larger orders after the smaller orders were executed. The CFTC stated that CME Group Inc.'s Market Regulation Department identified the disruptive trading practices and initiated an investigation.

In its ongoing litigation, the Court issued an ex parte restraining order that froze the Defendants' assets and preserved their records. The CFTC stated that it is seeking preliminary and permanent injunctive relief, civil monetary penalties, and equitable relief, including trading and registration bans and disgorgement.

See: Complaint against Heet Khara and Nasim Salim; Order Charging Heet Khara and Nasim Salim.