Tuesday, 30 January 2018

Banks and individuals charged in US over market 'spoofing'

US authorities have filed civil and criminal charges against three European banks and eight individuals for alleged manipulation in US futures and commodities markets.
The lenders - UBS, Deutsche Bank and HSBC - agreed to pay $46.6m to settle the cases brought by the Department of Justice (DoJ) and the Commodity Futures Trading Commission (CFTC).
It follows a large-scale investigation into so-called "spoofing" in metals and equities futures.

One of the eight named by the DoJ was James Vorley, 37, of the UK. He was said to have been based in London and employed as a precious metals trader at a leading global financial institution.

The department stressed that all defendants were "presumed innocent until proven guilty beyond a reasonable doubt in a court of law".

The case centres on allegations that defendants and co-conspirators placed hundreds, or thousands of orders that they did not intend to trade.

These "spoof orders" were said to have had the effect of artificially inflating or deflating prices of futures contracts traded on exchanges in Chicago.

Those behind the spoofs are then alleged to have executed real orders to buy, at artificially low prices, or sell, at artificially high prices "in order to generate trading profits or to illicitly mitigate other trading losses", the DoJ said.

Acting assistant attorney general John Cronan said they were alleged to have engaged in "sophisticated schemes or trading practices aimed at defrauding individuals and entities trading on US futures exchanges".
SKY            News.