A financial institution settled CFTC charges of spoofing, manipulation
and the attempted manipulation of certain precious metals futures
contracts.
According to the Order, several traders at Merrill Lynch
Commodities, Inc. ("Merrill Lynch") bought and sold gold,
silver, platinum and palladium futures contracts with the intent to
cancel before execution in order to manipulate market prices. The
Order also acknowledged Merrill Lynch's cooperation with the
investigation and remediation efforts.
Merrill Lynch agreed to (i) pay an $11.5 million civil penalty,
(ii) pay approximately $2.3 million in restitution, and (iii)
disgorge $11.1 million.
In a parallel matter, the DOJ entered into a Non-Prosecution Agreement with
Merrill Lynch. Merrill Lynch agreed to pay a total of $25 million
in criminal fines, forfeiture of trading profits and
restitution.
