HOUSTON, TX – Global commodities merchant Trafigura Trading LLC has been ordered to pay $55 million in penalties for multiple violations of commodity trading regulations, the Commodity Futures Trading Commission (CFTC) announced Monday. The settlement stems from charges of misappropriating confidential information and manipulative conduct affecting benchmark rates.
The CFTC’s order details findings that between 2014 and April 2019, Trafigura improperly obtained material non-public information from an employee at a trading entity, referred to as MTE. This included confidential pricing formulas and monthly import programs detailing gasoline volumes, types, and destination ports. Trafigura traders in Houston then used this information to inform their gasoline trading and negotiation strategies.
In addition to the misappropriation of information, the CFTC found that Trafigura manipulated the benchmark price of U.S. Gulf Coast high-sulfur fuel oil in February 2017. The company implemented a fuel oil export program to Singapore, establishing a derivative position that exceeded its physical position. This excess position acted as a speculative bet on fuel oil prices, allowing Trafigura to profit from an arbitrage opportunity.
“As reflected in today’s Order, Trafigura misappropriated material non-public information and engaged in manipulative conduct that affected published benchmark rates,” said Ian McGinley, Director of Enforcement. “This enforcement action is yet another example of the CFTC’s commitment to ensuring the derivatives markets remain free from trading abuses that undermine their integrity.”
This case also marks the first CFTC action charging a company under regulations designed to protect whistleblowers. The agency found that Trafigura had contractual arrangements that could potentially impede communication from potential witnesses. Brian Young, Director of the Whistleblower Office, stated the CFTC “will not tolerate contractual arrangements that could impede communication by potential witnesses.”
As part of the settlement, Trafigura is required to implement remedial measures to ensure future compliance with the Commodity Exchange Act and CFTC regulations. The company did not admit or deny the findings in the order.
Source: CFTC.gov
Related Federal Cases
- Tren de Aragua Leaders Unsealed, Terror Cartel Crimes, Texas, 2023 · New Mexico
- Parkchester Preservation Management, LLC, Tenant Blacklisting, New … · Arkansas
- Pam Bondi, Money Laundering, Texas, 2023 · New Mexico
- Parkchester Preservation Management, LLC, Tenant Blacklisting, New … · Arkansas
- Ken Paxton Blocked Texas Land Seizure, Oklahoma OK, 2025 · Alabama
