CFTC Loses Case Against Prominent Trader

Published On December 26, 2018

A federal judge in Manhattan dismissed a claim by the US Commodities Futures Trading Commission (CFTC) that prominent Chicago trader, Donald Wilson, and his company DRW Investments LLC, engaged in market manipulation.

The Judge held that the CFTC had failed to prove that Wilson rigged a market for interest rate swaps during seven months in 2011, as it had claimed. The CFTC had initially accused Wilson of exploiting the market for a three-month interest rate swap futures contract, and said that he had placed trades that he knew would not be filled.

The judge held that the trades had a legitimate economic rationale and it was “beyond the shadow of a doubt” that the defendants believed that the contract was worth more than their bids.