CME Member Fined and Barred for Wash Trades and Trade Misallocation
A member of the Chicago Mercantile Exchange, Howard Stark, has been fined $90,000 for engaging in illicit market behaviors.
The Chicago Mercantile Exchange found that, between September 2013 and April 2014, Stark purchased and sold orders for a customer when he knew that the customer was trying to avoid taking a bona fide market position. Moreover, Stark knowingly misallocated the sell side of these transactions on two occasions in order to avoid maintenance margin requirements.
Stark has further been permanently barred from being a member of CME or accessing any CME Group exchange.