CFTC Settles Enforcement Action in District Court for Floor Broker's Violation of CFTC Administrative Order

The CFTC announced that the U.S. District Court for the District of Columbia entered a consent order for permanent injunction, civil monetary relief and other equitable relief against a CFTC-registered floor broker for his violation of a CFTC Administrative Order ("CFTC Order") that was entered on November 25, 2013.

The CFTC Order, to which the individual consented, charged the individual and his company, SHK Management LLC, with attempting to manipulate the price of crude oil futures contracts on the New York Mercantile Exchange, as well as violating speculative position limits on two days in 2008.

The CFTC Order prohibited the individual from trading outright futures contracts in any market during the closing period for a two-year period. Six months later, the individual violated the CFTC Order by trading two outright gold futures contracts on May 22, 2014 during the closing period.

The consent order entered into by the U.S. District Court orders the individual to pay a $100,000 civil monetary penalty, and extends the prohibition from trading outright futures contracts in any market during the closing period for another two years.

See: CFTC Press Release; Consent Order.