Non-US-Based Company Fined $700,000 by CFTC for Spoofing

Published On January 21, 2020

21 January 2020: The US’s Commodity and Futures Trading Commission (CFTC) has ordered a South Korean company to pay $700,000 in an order simultaneously filing and settling charges of spoofing. 

The CFTC order finds that, from December 2014 to April 2016, a trader at Daewoo Securities Co. Ltd (owned by Mirae Asset Daewoo Co. Ltd) placed numerous orders with the intent to cancel those orders before execution. These orders were placed in order to create a misleading impression of the market and to induce other market participants to trade. 

Commenting on the order, CFTC Director of Enforcement, James McDonald, said “this enforcement action demonstrates, once again, that the Commission will hold overseas entities that spoof in our markets accountable. 

The order requires Mirae to pay $700,000 in civil monetary penalties. It recognizes that Mirae cooperated fully with the CFTC, which allowed for a speedy resolution. The monetary penalty has therefore been reduced in this instance.