Trader Settles CFTC Charges for "Spoofing" in Soybean Futures Market

A trader at a proprietary trading firm agreed to settle CFTC charges for "spoofing" (i.e., placing multiple orders without intention to execute) in the soybean, soybean meal and soybean oil futures market traded on the Chicago Board of Trade.

According to the CFTC Order, the trader allegedly placed small bids or offers on one side of the market, with large bids or offers on the opposite side, in order to induce other market participants to fill the small orders as he cancelled the larger spoof orders. To settle the charges, the trader agreed to pay $120,000 and to a four-month suspension from trading.