CFTC Issues Trading Firm With $350k Fine for Wash Sales
Published On July 10, 2019
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The US Commodity Futures Trading Commission (CFTC) filed an order to settle charges against Eagle Market Makers for engaging in wash sales and non-competitive transactions.
The CFTC found that, between February 2015 and February 2019, Eagle engaged in trading activities during pre-opening market periods that constituted wash sales. It held that the firm attempted to neutralise the risk of pending orders that it was not permitted to withdraw or amend by exchange rules, when it saw that the indicative opening price was moving in an adverse direction.
The order requests that Eagle pay a $350,000 civil monetary penalty, as well as asking that it takes steps to implement and improve its controls and procedures.