CFTC Enters Into NPAs With Traders Who Admitted To Spoofing

The CFTC entered into non-prosecution agreements with three traders who admitted to spoofing violations. According to the CFTC, the spoofing strategy employed by the traders involved entering and quickly canceling large orders on one side of the futures market in order to "induce other market participants to transact on . . . smaller resting orders on the opposite side."

In agreeing not to prosecute Daniel Liao, Jeremy Lao, and Shlomo Salant (collectively, the "traders"), the CFTC acknowledged the traders' "timely and substantial cooperation, immediate willingness to accept responsibility for their misconduct, material assistance provided to the CFTC's investigation of Citigroup, and the absence of a history of prior misconduct."