Chicago, IL – October 1, 2019 – The Commodity Futures Trading Commission (CFTC) has settled charges against Belvedere Trading LLC, a Chicago-based proprietary trading firm, for engaging in a pattern of spoofing in the E-mini S&P 500 futures market. The firm utilized two of its traders to execute the manipulative practice on hundreds of occasions between June 2014 and November 2015.
The CFTC’s order details that Belvedere’s traders placed orders with the intent to cancel them before execution, creating a false impression of market demand and manipulating prices. This activity occurred during two distinct periods: from June 2014 to February 2015, and again from October to November 2015. The firm did not explicitly name the two traders involved in the manipulative practice.
As a result of the settlement, Belvedere Trading LLC will pay a $1.1 million civil monetary penalty. The CFTC acknowledged Belvedere’s proactive approach in resolving the matter, resulting in a reduced penalty. The order also mandates that Belvedere cease and desist from any further violations of the spoofing prohibition outlined in the Commodity Exchange Act (CEA).
Spoofing is a form of market manipulation that undermines the integrity of the futures markets, and the CFTC is committed to vigorously pursuing those who engage in such practices,” stated a CFTC representative. The agency thanked the Market Regulation Department of the CME Group for their assistance in the investigation.
The case was led by CFTC staff members Stephen Turley, Allison Sizemore, Rachel Hayes, Becky Jelinek, Chris Reed, Charles Marvine, and former staff member Peter Riggs. The investigation highlights the CFTC’s ongoing efforts to monitor and regulate the futures markets, ensuring fair and transparent trading practices.
Source: CFTC.gov
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