A Panel of the Chicago Board of Trade (the "Panel")
Probable Cause Committee ordered a trader to pay $50,000 for entering
orders without the intention to execute (i.e.,
"spoofing").
According to the Panel, the trader, who is not a member of the
Chicago Mercantile Exchange ("CME"), placed orders in
CBOT Oats and Rough Rice markets to gauge the depth of the order
book during the pre-opening period. The alleged entry and
cancelation of these non-bona fide transactions between
February and July 2016 caused the indicative opening price to
fluctuate.
By failing to answer the charge, the Panel determined, the
trader admitted to it and waived his right to a hearing.
In addition to being ordered to pay the fine, the trader was
suspended from trading on any CME trading or clearing platforms for
one year.
