CHICAGO, IL – October 1, 2024 – The Commodity Futures Trading Commission (CFTC) today announced charges against Taishin Lin, a trader for Taishin Securities Co., Ltd., for manipulative trading practices on the Chicago Mercantile Exchange (CME). The CFTC alleges Lin engaged in wash sales and non-competitive transactions in late 2022.
The order filed by the CFTC details how Lin, while transferring futures positions between brokers, executed 50 wash trades encompassing 175 contracts with a total value of approximately $17 million. These trades, occurring between October and December 2022, involved simultaneously buying and selling the same delivery month of the same futures contract at the same price. The CFTC asserts this was done with the intent to offset orders and minimize legitimate market competition.
According to the CFTC, Lin reached internal trading limits with one broker and sought to move positions to a second broker. Rather than executing the transfer through standard market mechanisms, the trader implemented a scheme designed to negate price discovery and create the illusion of trading volume. This action violated the Commodity Exchange Act and CFTC regulations.
As a result of the settlement, Taishin Securities Co., Ltd. will pay a $200,000 civil monetary penalty. Additionally, the company is required to cease and desist from any further violations of the aforementioned regulations. The CFTC’s action aims to maintain the integrity of the CME and ensure fair, open competition in the derivatives markets.
The case was led by CFTC staff members Steven Kim, Kara Mucha, Daniel Jordan, and Rick Glaser of the Division of Enforcement.
Source: CFTC.gov
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