Tag: CFTC

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Filing: CFTC v Morgan Stanley

Filing

CFTC v Morgan Stanley

CFTC, 30 September 2019

The Commodity Futures Trading Commission (“Commission”) has reason to believe that during the period from in or about November 2013 to at least November 2014 (“Relevant Period”), Morgan Stanley Capital Group Inc., (“Morgan Stanley” or “Respondent”) violated Section 4c(a)(5)(C) of the Commodity Exchange Act (the “Act”), 7 U.S.C. § 6c(a)(5)(C) (2012). Therefore, the Commission deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted to determine whether Respondent engaged in the violations set forth herein and to determine whether any order should be issued imposing remedial sanctions.

PDF (7 pages): CFTC v Morgan Stanley

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Article: J.P. Morgan is only the start as DOJ and CFTC crack down on spoofing

Article - Media

J.P. Morgan is only the start as DOJ and CFTC crack down on spoofing

Neils Christensen

Kitco News, 19 September 2019

Three traders charged with manipulating precious metals markets for nearly a decade could be only the start of a larger market-wide crackdown on previously-unchecked illegal market behavior.

According to media reports, federal prosecutors and regulators are intensifying their investigations of allegedly fraudulent precious metals trades at J.P. Morgan Chase to other U.S. markets and financial firms.

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Article: Three J.P. Morgan precious metals traders charged as criminal probe continues

Article - Media

Three J.P. Morgan precious metals traders charged as criminal probe continues

Dawn Giel

CNBC, 16 September 2019

Federal prosecutors on Monday accused three J.P. Morgan precious metals traders, including the global head of base and precious metals trading, of participating in a racketeering conspiracy in connection with a multiyear scheme to manipulate the markets and defraud customers.

The alleged scheme saw the nation’s largest bank by assets profit handsomely, while investors suffered losses.

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Article: Chat room messages are ‘smoking gun’ in $25 million Merrill CFTC spoofing penalty

Article - Media

Chat room messages are ‘smoking gun’ in $25 million Merrill CFTC spoofing penalty

Todd Ehret

Reuters, 17 July 2019

The U.S. Commodities Futures Trading Commission (CFTC) last month chalked up another impressive settlement over the market manipulation tactic known as “spoofing.” The $25 million penalty for Merrill Lynch Commodities in the case is the second largest related to spoofing.

Like many of the prior cases, where the firms cooperated with the investigations and were given credit for doing so, the proverbial “smoking gun” in the case was the record of online chat rooms where traders discussed markets, prices, and their strategies and actions.

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Article: Merrill Lynch Commodities receives $25m fine for spoofing and market manipulation (15 July 2019)

Article - Media

Merrill Lynch Commodities receives $25m fine for spoofing and market manipulation (15 July 2019)

Jennie Clarke

Behavox, 15 July 2019

Merrill Lynch Commodities Inc has received a $25m charge from the US Commodity Futures Trading Commission (CFTC) for spoofing, manipulation and attempted manipulation, with respect to certain precious metals futures.

The CFTC found that Merrill Lynch Commodities traders placed orders to buy and sell precious metals futures contracts with the intent to cancel their orders before execution. The traders employed a specific spoofing strategy in which they would place a small bid or offer with the intent to execute that order. Prior to the execution of that order, they would place a larger order on the opposite side of the same market with the intent to cancel that order before execution. This manipulated market prices and created artificial and fluctuating prices.

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Article: Catch of the Week — Merrill Lynch Commodities Inc.

Article - Media, Publications

Catch of the Week — Merrill Lynch Commodities Inc.

CONSTANTINE CANNON, 28 June 2019

Merrill Lynch Commodities Inc (“Merrill”), a commodity trading subsidiary of Bank of America Corporation, agreed on June 25th to two $25 million settlements with both the Department of Justice (“DOJ”) and the Commodity Futures Trading Commission (“CFTC”) to resolve allegations it conducted deceptive trading practices in United States commodities markets. Continue reading “Article: Catch of the Week — Merrill Lynch Commodities Inc.”

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Article: Merrill Lynch Pays $36.5 Million to Settle Spoofing Charges

Article - Media, Publications

Merrill Lynch Pays $36.5 Million to Settle Spoofing Charges

Aziz Abdel-Qader, 26 June 2019

Merrill Lynch Commodities, Inc. (MLCI) has just settled spoofing charges with the Commodity Futures Trading Commission (CFTC) by agreeing to pay a combined $36.5 million. The CFTC action centered on spoofing activity carried out by Bank of America’s global commodities trading business in a scheme that ran from 2008 through 2014 and involved dozens of fraudulent orders that were canceled before execution.

MLCI precious metals traders are accused of working with other traders to rig the purchase and sale of futures contracts on the Chicago Mercantile Exchange and the Chicago Board of Trade. Continue reading “Article: Merrill Lynch Pays $36.5 Million to Settle Spoofing Charges”

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Article: MERRILL LYNCH CAUGHT CRIMINALLY MANIPULATING PRECIOUS METALS MARKET OVER 6 YEARS

Article - Media, Publications

MERRILL LYNCH CAUGHT CRIMINALLY MANIPULATING PRECIOUS METALS MARKET OVER 6 YEARS

GOLDBROKER, 26 June 2019

Remember when it was pure tinfoil-hat conspiracy theory to accuse one or more banks of aggressively, compulsively and systematically manipulating the precious metals – i.e., gold and silver – market? We do, after all we made the claim over and over, while demonstrating clearly just how said manipulation was taking place, often in real time.

Well, it’s always good to be proven correct, even if it is years after the fact. Continue reading “Article: MERRILL LYNCH CAUGHT CRIMINALLY MANIPULATING PRECIOUS METALS MARKET OVER 6 YEARS”

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Article: Merrill Lynch fined $25 million for multi-year spoofing scheme

Article - Media, Publications

Merrill Lynch fined $25 million for multi-year spoofing scheme

Hayley McDowell, 26 June 2019

Merrill Lynch has been fined $25 million by authorities in the US after admitting it engaged in a multi-year spoofing scheme in the precious metals futures market.

The global commodities trading arm of Merrill Lynch agreed to pay the fine to resolve the US Department of Justice’s investigation into the scheme which saw the firm’s metals traders deceive market participants by placing fraudulent orders for futures contracts.

Merrill Lynch Commodities admitted that from at least 2008 until 2014, its precious metals traders placed orders for futures with intentions to cancel before execution, in a bid to create a false impression of increased supply and demand and manipulate the market. Continue reading “Article: Merrill Lynch fined $25 million for multi-year spoofing scheme”

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Release: Merrill Lynch Commodities Inc. Enters into Corporate Resolution and Agrees to Pay $25 Million in Connection with Deceptive Trading Practices Executed on U.S. Commodities Markets

Release

Merrill Lynch Commodities Inc. Enters into Corporate Resolution and Agrees to Pay $25 Million in Connection with Deceptive Trading Practices Executed on U.S. Commodities Markets

DOJ, 25 June 2019

Merrill Lynch Commodities Inc. (MLCI), a global commodities trading business, has agreed to pay $25 million to resolve the government’s investigation into a multi-year scheme by MLCI precious metals traders to mislead the market for precious metals futures contracts traded on the Commodity Exchange Inc. (COMEX), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.

Read full release.

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Article: Merrill Lynch fined by DOJ, CFTC for ‘spoofing’ in precious metals futures

Article - Media, Publications

Merrill Lynch fined by DOJ, CFTC for ‘spoofing’ in precious metals futures

Francine McKenna, 25 June 2019

Merrill Lynch’s global commodities trading business agreed to pay $25 million and enter into a non-prosecution agreement with the Department of Justice on Tuesday to settle charges regarding a multi-year scheme by its precious metals traders to mislead the market for precious metals futures contracts traded on the Commodity Exchange Inc. Merrill Lynch admitted to the allegations that beginning by at least 2008 and continuing through 2014, its precious metals traders schemed to deceive other market participants by injecting materially false and misleading information into the precious metals futures market by placing fraudulent “spoof” orders for precious metals futures contracts that, at the time the traders placed thousands of fraudulent orders, they intended to cancel before execution. Continue reading “Article: Merrill Lynch fined by DOJ, CFTC for ‘spoofing’ in precious metals futures”

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Article: CFTC Orders Merrill Lynch Commodities, Inc. to Pay Approximately $25 Million for Spoofing, Manipulation, and Attempted Manipulation in Precious Metals Futures

Article - Media, Publications

CFTC Orders Merrill Lynch Commodities, Inc. to Pay Approximately $25 Million for Spoofing, Manipulation, and Attempted Manipulation in Precious Metals Futures

CFTC , 25 June 2019

The Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Merrill Lynch Commodities, Inc. (MLCI), a provisionally registered swap dealer, for spoofing, manipulation, and attempted manipulation over a six-year period with respect to certain precious metals futures contracts traded on the Commodity Exchange, Inc. (COMEX).

The CFTC Order imposes monetary sanctions totaling approximately $25 million, which includes a civil monetary penalty of $11.5 million dollars, over $2.3 million in restitution, and disgorgement of $11.1 million. The Order also requires MLCI to cooperate with the CFTC in matters related to this action and the underlying conduct, and to comply with certain obligations in connection with its corporate compliance program and reporting requirements. Continue reading “Article: CFTC Orders Merrill Lynch Commodities, Inc. to Pay Approximately $25 Million for Spoofing, Manipulation, and Attempted Manipulation in Precious Metals Futures”

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Article: Market manipulation caused surge in prices of bitcoin and other cryptocurrencies, researchers say

Article - Media, Publications

Market manipulation caused surge in prices of bitcoin and other cryptocurrencies, researchers say

DUNCAN RILEY, 13 June 2018

A new research paper has confirmed long-held suspicions that the Tether cryptocurrency was used by people linked to the Bitfinex exchange to drive up the price of bitcoin and other cryptocurrencies last year.

The paper, written by University of Texas Professor John Griffin, who is known for catching fraud in financial markets, and graduate student Amin Shams, details the direct relationship between the issuing of Tether during bitcoin price drops and how it was used to buy bitcoin on the drop, artificially creating demand and driving the price up. Continue reading “Article: Market manipulation caused surge in prices of bitcoin and other cryptocurrencies, researchers say”

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Article: Deutsche Bank Ordered to Pay $70 Million for Manipulation of USD Swap Rates

Article - Media, Publications

Deutsche Bank Ordered to Pay $70 Million for Manipulation of USD Swap Rates

Finance Magnates Staff, 02 February 2018

The Commodity Futures Trading Commission (CFTC) issued an order directed at Deutsche Bank Securities Inc. (DBSI), to pay a $70 million civil monetary penalty over charges of attempted manipulation of the ISDAFIX benchmark, between 2007 and 2012.

The US Dollar International Swaps and Derivatives Association Fix is a global benchmark, used in the settlement of various interest rate products, including cash settlement of options on interest rate swaps. The allegations indicate that Deutsche Bank and some of its traders intentionally attempted to manipulate the benchmark, in an effort to benefit the bank’s positions. The specific USD ISDAFIX rates and spreads that the bank attempted to alter are the ones issued at 11:00 a.m. Eastern Time each day, and act as a mid-market rate to accommodate settlements across various financial markets. Continue reading “Article: Deutsche Bank Ordered to Pay $70 Million for Manipulation of USD Swap Rates”

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Article: Key to catching the traders charged with manipulating metals futures: electronic chatter

Article - Media

Key to catching the traders charged with manipulating metals futures: electronic chatter

Francine McKenna

MarketWatch, 30 January 2018

The Commodity Futures Trading Commission announced criminal and civil enforcement actions on Monday against Deutsche Bank AG and Deutsche Bank Securities Inc, UBS AG and HSBC Securities (USA) Inc. and six individuals involved in spoofing and stop loss collusion schemes. The criminal and civil enforcement actions were filed in conjunction with the Department of Justice and Federal Bureau of Investigation’s Criminal Investigative Division.

Deutsche Bank AG and Deutsche Bank Securities Inc. were hit the hardest, agreeing to pay a $30 million penalty while neither admitting or denying they failed to supervise precious metals traders who allegedly schemed to manipulate the price of precious metals futures contracts and allegedly colluding to trigger customer stop-loss orders. The fraud allegedly ran from Feb. 2008 to at least Sept. 2014.

Read full article.

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