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ARTICLE · 24 SEPTEMBER 2019

Precious Metals Refiner Settles CFTC Spoofing Charges

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A precious metals refiner and its former futures trader settled CFTC charges (see here and here) for spoofing trades involving precious metals contracts.

United StatesFinance and Banking
Robert Zwirb
Robert Zwirb
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A precious metals refiner and its former futures trader settled CFTC charges (see here and here) for spoofing trades involving precious metals contracts.

According to the CFTC, a former trader of Heraeus Metals New York LLC ("Heraeus") engaged in spoofing involving Silver and Gold futures contracts traded on the Commodity Exchange. The CFTC found that Heraeus was "vicariously liable" as the employer.

To settle the CFTC charges, the former trader agreed to (i) cease and desist from further violating CFTC rules, (ii) pay a civil monetary penalty of $130,000, (iii) a suspension for four months from associating with any CFTC registrant and (iv) comply with specific provisions and undertakings outlined in the Offer. Separately, Heraeus agreed to (i) cease and desist from further violating CFTC rules, (ii) pay a civil monetary penalty of $900,000 and (iii) comply with specific provisions and undertakings outlined in the Offer.

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