Former UBS precious metals trader Andre Flotron has been ordered to pay $100,000 and faces a one-year trading ban after being found guilty of spoofing, the Commodity Futures Trading Commission (CFTC) announced Wednesday.
Judge Vanessa Bryant of the U.S. District Court for the District of Connecticut issued the Final Judgment and Consent Order on February 5, 2019, following a complaint filed by the CFTC on January 26, 2018. The order details Flotron’s manipulative trading practices between August 2008 and November 2013 while employed by UBS AG.
The CFTC found that Flotron engaged in “spoofing” – placing large orders in precious metals futures markets with no intention of executing them. These “spoof orders” were designed to create a false impression of market supply or demand, tricking other traders into reacting to the fabricated signal. Flotron then profited from smaller, legitimate orders he had placed in the opposite direction.
“This case reflects our continued commitment to preserving the integrity of our markets…and to rooting out unlawful practices like spoofing,” stated James McDonald, CFTC Director of Enforcement. “As this case shows, we will continue to work vigorously to hold individuals accountable, and not just the companies that employ them, for misconduct in our markets.”
The investigation, conducted by the CFTC’s Spoofing Task Force, determined that Flotron’s actions violated the Commodity Exchange Act (CEA) and CFTC Regulations. In addition to the monetary penalty, Flotron is prohibited from trading and registering with the CFTC for one year.
Staff members Alben Weinstein, Brandon Wozniak, David Oakland, Sam Wasserman, Patryk J. Chudy, Lenel Hickson, Jr., and Manal M. Sultan were responsible for the case.
Source: CFTC.gov
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