Christian Trunz, a former precious metals trader, has been charged with spoofing in the futures markets, the U.S. Commodity Futures Trading Commission (CFTC) announced on September 16, 2019. The case, originating in Washington, D.C., stems from the CFTC’s Spoofing Task Force and involves conduct between 2007 and 2016.
The CFTC found that Trunz, a U.S. citizen and resident of the United Kingdom, engaged in spoofing on thousands of occasions while employed at two New York banks. Spoofing involves placing orders with the intention of canceling them before execution, creating a false impression of market demand and manipulating prices. Trunz admitted to the practice as part of a formal cooperation agreement with the CFTC’s Division of Enforcement.
According to the CFTC’s order, Trunz and colleagues placed these deceptive orders to induce other traders to react, allowing them to fill their desired orders at more favorable prices. This strategy was employed to maximize profits and minimize losses for both Trunz and the banks he worked for. The order also indicates that Trunz learned the spoofing technique from senior traders and implemented it with the approval of his supervisors.
The CFTC order mandates that Trunz cease and desist from violating the Commodity Exchange Act’s prohibition on spoofing. While the CFTC has reserved the right to determine sanctions against Trunz, they acknowledged his cooperation in the investigation. Trunz has already pleaded guilty in federal court to one count of spoofing and one count of conspiracy to commit spoofing in the case United States v. Trunz (E.D.N.Y.).
The CFTC expressed gratitude for the assistance provided by the Department of Justice’s Fraud Section and the Federal Bureau of Investigation in this matter. The investigation was led by CFTC staff members Trevor Kokal, David C. Newman, Mark A. Picard, Steven I. Ringer, Jordon Grimm, Patrick Marquardt, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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