Chicago trader Kevin Crepeau has been penalized by the Commodity Futures Trading Commission (CFTC) for spoofing in the soybean futures market, according to an order issued today. The CFTC alleges Crepeau engaged in the manipulative practice between August 2013 and June 2016 while trading at a proprietary firm.
The CFTC found that Crepeau utilized a combination of automated and manual order placement to manipulate the market. He reportedly used an automated tool to place small “Genuine Orders” and simultaneously entered larger, manually placed “Spoof Orders” on the opposite side of the market. The Spoof Orders were allegedly intended to induce other traders to execute his Genuine Orders, after which Crepeau would cancel the spoofed orders.
This pattern of trading was repeated numerous times, the CFTC claims, effectively manipulating the price of soybean, soybean meal, and soybean oil futures contracts on the Chicago Mercantile Exchange (CME). The agency asserts this activity undermines market integrity and disadvantages legitimate market participants, including agricultural producers.
As a result of the investigation, Crepeau will pay a $120,000 civil monetary penalty. He is also subject to a four-month suspension from trading on all registered entities and in all commodity interests. The CFTC’s enforcement action was conducted in coordination with a parallel disciplinary inquiry by the CME Group, which also announced action against Crepeau today.
“As this case shows, we will continue to work tirelessly to preserve the integrity of our markets, and to protect those who rely on them,” stated James McDonald, CFTC’s Director of Enforcement. The case was pursued by the CFTC’s Spoofing Task Force, with staff members John Buffington, Christine Ryall, and Paul Hayeck leading the investigation.
Source: CFTC.gov
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