Futures Trader Banned After Pleading Guilty to 'Spoofing'
June 02 2017 - 12:59PM
Dow Jones News
By Dave Michaels and Alexander Osipovich
WASHINGTON -- A former futures trader at a global bank was
permanently barred from the industry after admitting he conspired
to manipulate the price of gold and silver futures contracts.
David Liew, a trader based in Asia, also pleaded guilty in
federal criminal court in Illinois on Thursday to using illegal
spoofing techniques from 2009 to 2012. Regulators and prosecutors
have cracked down on spoofing, which involves sending fake offers
intended to push prices in a direction the trader wants. Congress
made it illegal through the 2010 Dodd Frank financial overhaul
law.
Mr. Liew manually placed hundreds of orders on a trading
platform operated by CME Group Inc. that were intended to trick
other market participants into altering their prices in a way that
would benefit his other offers to buy or sell, according to a plea
agreement in his criminal case. Mr. Liew coordinated with other
traders at his bank and was taught by other metals traders at the
bank how to spoof, according to court documents.
According to one chat cited by the Commodity Futures Trading
Commission, Mr. Liew told a trader at another bank that he "sold
out...by just having fake bids."
A lawyer for Mr. Liew didn't immediately respond to a request
for comment.
The CFTC said in its order that Mr. Liew pushed silver prices
down to benefit the other trader's positions. The commission
regulates futures trading in the U.S. and reached an agreement with
Mr. Liew that banned him from trading commodities or futures.
The criminal charges to which Mr. Liew pleaded guilty this week
carry a maximum sentence of five years in prison and a fine of
$250,000, according to court documents.
Write to Dave Michaels at dave.michaels@wsj.com and Alexander
Osipovich at alexander.osipovich@dowjones.com
(END) Dow Jones Newswires
June 02, 2017 13:44 ET (17:44 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
CME (NASDAQ:CME)
Historical Stock Chart
From Jun 2024 to Jul 2024
CME (NASDAQ:CME)
Historical Stock Chart
From Jul 2023 to Jul 2024