The US Commodity Futures Trading Commission (CFTC) has filed civil enforcement action against two traders from the United Arab Emirates, who it alleges ‘spoofed’ the gold and silver futures markets, it said in a note.
The commission alleges that between February 2015 and April 28 2015, defendants Heet Khara and Nasim Salim regularly placed larger aggregate orders for gold and silver contracts on COMEX opposite smaller orders and cancelled the larger orders after the smaller orders were executed.
CME Group, which operates COMEX, identified the disruptive trading practices and initiated the investigation, the release said.
“Protecting the integrity and stability of the US futures markets is critical to ensuring a properly functioning financial system,” CFTC director of enforcement Aitan Goelman said.
“Aggressive prosecution of spoofing is an important part of that mission. Today’s actions make clear that the CFTC will partner with self-regulatory organisations to find and swiftly prosecute those who engage in such disruptive trading practices, wherever they may be,” Goelman added.
The CFTC is seeking preliminary and permanent injunctive relief, civil monetary penalties, and equitable relief including trading and registration bans and disgorgement.
(Editing by Kathleen Retourne)
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