Former Precious Metals Trader Admits Spoofing and Manipulation to CFTC
The US Commodity Futures Trading Commission (CFTC) have settled charges against two former precious metal traders who admitted to spoofing and manipulative conduct in the futures markets.
The order, issued by the CFTC, found that the two traders Corey Flaum and John Edmonds had placed futures orders they intended to cancel before execution, for the purpose of creating false signals of buying or selling interest. The spoof orders were placed with the intention of deceiving market participants.
Commenting on the settlements, Director of Enforcement at CFTC James McDonald said:
“Today’s enforcement actions send a clear message that spoofing and manipulation in our markets will not be tolerated and that the CFTC will use all of the tools in its arsenal to aggressively pursue individuals and entities who engage in this misconduct.”