Heet Khara and Nasim Salim, residents of the United Arab Emirates, agreed to settle charges brought against them for alleged spoofing activity from January 29, 2015, through March 13, 2015, involving gold and silver futures contracts traded on the Commodity Exchange, Inc. The defendants were initially sued by the CFTC for this activity on May 5, 2015, in a federal court in New York, after CME Group on April 30, 2015, summarily barred Mr. Khara and Mr. Salim without a hearing from trading on any CME Group exchange for 60 days. In its complaint, the CFTC alleged that Mr. Khara initially, alone, on numerous occasions, placed layered orders on one side of the market with intent to cancel the orders before execution, to induce a run up or run down of relevant market prices. At the same time, he placed one or more smaller orders on the opposite side of the market to be executed when the market increased or decreased in price. Later on, Mr. Khara and Mr. Salim worked together to place layering orders and orders to be executed, claimed the CFTC. To resolve the CFTC charges, Mr. Khara agreed to pay a fine of US $1.38 million, while Mr. Salim agreed to pay a fine of US $1.31 million. Both individuals also agreed to never again trade on a CFTC-registered execution facility, among other sanctions. (Click here for details regarding the CFTC’s complaint in the article, “Two Traders Subject of CME Summary Suspension for Alleged Spoofing Sued by CFTC Too” in the May 10, 2015 edition of Bridging the Week.)