January 29, 2018

Jim Lundy Interviewed Regarding the CFTC’s and DOJ’s First Multi-Party Spoofing Cases and the CFTC’s Supervisory Charges

Chicago partner Jim Lundy provided commentary regarding the first-ever coordinated charges filed against multiple parties for spoofing by the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ). The CFTC settled with three global futures firms on charges that included failing to supervise and charged several individuals, some of whom were employed by the firms, with spoofing, and the DOJ criminally charged several individuals with spoofing as well.

All of the cases involved allegations of the type of manipulative trading commonly known as spoofing. As Jim observed, this continues to be one of the CFTC Enforcement Division’s primary priorities. He noted that “[f]or the CFTC, in terms of its historical coordination with the DOJ, this type of multiprong and multiparty filing is a first.” Jim also provided perspective about what firms should take away from the CFTC’s recent actions charging firms with failing to supervise manipulative trading activity, advising that “[t]he CFTC enforcement division is sending the message that there needs to be education, training, surveillance, reporting so that you can adequately detect and prevent manipulative trading like this.”

Read “DOJ, CFTC Spoofing Cases Show Cooperation Running High.”

For more information see the CFTC’s main release.

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