April 2020

Jim Lundy Serves as Independent Monitor for CFTC’s First Spoofing Enforcement Action

United States - Illinois

Chicago partner Jim Lundy served as the independent monitor for one of the first “spoofing” manipulative trading enforcement actions instituted by the Commodity Futures Trading Commission (CFTC).

In an initial complaint filed on October 19, 2015, the CFTC alleged the employment of manipulative trading/spoofing by the defendants — 3Red Trading LLC and its principal, Igor B. Oystacher — in the markets for E-Mini S&P 500, Copper, Crude Oil, Natural Gas and VIX futures contracts on multiple exchanges. Jim was appointed as monitor by the Honorable Judge Amy J. St. Eve of the U.S. District Court for the Northern District of Illinois as part of a December 20, 2016, settlement between the CFTC and the defendants. Over a three-year period from that date, Jim was tasked with monitoring the trading of 3Red and Oystacher and identifying any future violations of the Commodity Exchange Act and CFTC regulations, pursuant to a monitorship agreement.

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