WASHINGTON, DC – Davis Ramsey, a Florida-based futures trader, has been charged with market manipulation by the Commodity Futures Trading Commission (CFTC), the agency announced September 27, 2018. Ramsey allegedly engaged in a manipulative scheme between April 2015 and May 2017, designed to influence the prices of futures contracts traded on the Chicago Mercantile Exchange (CME) and Commodity Exchange (COMEX).
According to the CFTC, Ramsey’s actions were intended to impact the outcome of binary contracts traded on the North American Derivatives Exchange (Nadex). He allegedly took positions in binary contracts whose outcomes were tied to the prices of futures contracts on CME and COMEX, then traded in those futures contracts with the specific goal of manipulating their prices to benefit his Nadex positions.
The CFTC’s order details that Ramsey, on at least one occasion, artificially inflated the price of the S&P e-mini 500 futures contract on the CME. This behavior, the CFTC alleges, constitutes a violation of the Commodity Exchange Act (CEA) and related regulations.
As a result of the charges, Ramsey will pay a $325,000 civil monetary penalty and $250,636.25 in disgorgement. He is also prohibited for five years from trading commodity interests, having them traded on his behalf, controlling the trading of others, or soliciting funds for commodity transactions. Additionally, Ramsey is permanently banned from trading on Nadex and is required to cease and desist from further violations of the CEA and Commission Regulations.
The CFTC investigation was conducted in coordination with inquiries by CME Group and Nadex. Both exchanges have also taken disciplinary action against Ramsey, with CME Group issuing a Notice of Disciplinary Action and Nadex approving a settlement agreement on September 26, 2018, stemming from the same misconduct.
“This action highlights the CFTC’s ability to detect and prosecute manipulative conduct — even when that conduct stretches across different markets and different exchanges,” said James McDonald, CFTC Director of Enforcement. “This case highlights again that, together, we will protect our markets from all types of manipulative activities.”
Source: CFTC.gov
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