UPDATED: U.S. authorities charge three banks, eight individuals in futures 'spoofing' probe
Last edited Mon Jan 29, 2018, 08:33 PM - Edit history (1)
EDIT:
Article updated at link
Original headline:
U.S. authorities due to make arrests in futures 'spoofing' probe: sources
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Source:
Reuters
#BUSINESS NEWS JANUARY 29, 2018 / 6:33 AM / UPDATED 2 HOURS AGO
U.S. authorities charge three banks, eight individuals in futures 'spoofing' probe
Michelle Price
5 MIN READ
WASHINGTON (Reuters) - The U.S. Justice Department and the countrys derivatives regulator said on Monday they had filed civil and criminal charges against three European banks, which paid $46.6 million to settle the cases, and eight individuals for alleged manipulation in U.S. futures and commodities market.
UBS, Deutsche Bank and HSBC and former traders at the banks, as well as individuals at other firms, were charged following a large-scale multi-agency probe including the Commodity Futures Trading Commission (CFTC) into spoofing in metals and equities futures.
The case marks the first time the Justice Department and the CFTC had worked together, along with the Federal Bureau of Investigation, to bring both criminal and civil charges against multiple companies and individuals, and underlined the authorities increasing focus on holding individuals accountable for corporate wrongdoing.
Spoofing, which is a criminal offense under the 2010 Dodd- Frank financial reform law, involves placing bids to buy or offers to sell futures contracts with the intent to cancel them before execution. By creating an illusion of demand, spoofers can influence prices to benefit their market positions.
Deutsche Bank and UBS have agreed to pay $30 million and $15 million respectively to settle the civil charges in the case, while HSBC will pay $1.6 million, the CFTC said.
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Read more:
https://www.reuters.com/article/us-usa-cftc-arrests/u-s-authorities-due-to-make-arrests-in-futures-spoofing-probe-sources-idUSKBN1FI19J
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CFTC press release:
CFTC Files Eight Anti-Spoofing Enforcement Actions against Three Banks (Deutsche Bank, HSBC & UBS) & Six Individuals