Stamford, Connecticut traders charged with 'spoofing' markets

Stamford, Connecticut traders charged with 'spoofing' markets

Stamford, Connecticut traders charged with 'spoofing' markets

In actions brought by the CFTC, which regulates derivatives markets, Deutsche Bank suffered the largest penalty at US$30 million while UBS agreed to pay US$15 million and HSBC was fined US$1.6 million.

One of the eight named by the DoJ was James Vorley, 37, of the UK.

The department stressed that all defendants were "presumed innocent until proven guilty beyond a reasonable doubt in a court of law".

In a criminal complaint, Thakkar is accused of developing a software program that helped an unnamed commodities trader engage in "spoofing", placing thousands of bids or offers on the E-mini S&P, a market on the Chicago Mercantile Exchange, with the intent of canceling the trades before they were executed, but after bids were placed on the other side of the market. The Complaint further alleges that Mohan executed his scheme by placing at least one iceberg order (whose order quantity is only partially visible in the order book) on one side of the market that he meant to execute and separately placing one or more fully visible orders on the opposite side of the market that he meant to cancel before execution (spoof orders).

"Conduct like this poses significant risk of eroding confidence in USA markets and creates an uneven playing field for legitimate traders and investors", John Cronan, the acting head of the Justice Department's criminal division, said in a statement.


The CFTC said Deutsche Bank had agreed to pay $30m to civil charges in the case, covering a period from 2008 to 2014.

After the verdict on Monday, John Cronan, the acting head of the criminal division of the Justice Department, released a statement saying: "Conduct like this poses significant risk of eroding confidence in United States markets and creates an uneven playing field for legitimate traders and investors". Two other financial institutions were also penalized: HSBC for $1.6 million and Deutsche Bank for $30 million and HSBC $1.6 million. The probe received cooperation from all the banks.

HSBC said the bank was pleased to have resolved the matter.

A spokesman for UBS did not immediately provide comment.

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