CME Group business conduct committees permanently banned three traders from trading on CME Group exchanges for market conduct violations involving alleged spoofing, pre-arranged trades and wash sales.
In two actions – one involving futures traded on the New York Mercantile Exchange and another involving futures traded on the Commodity Exchange, Inc. – Nitin Gupta was charged with engaging in “a pattern of activity” involving the repeated entry of large orders for futures contracts “without the intent to trade” from February through April 2013. The relevant BCCs claimed Mr. Gupta entered these orders to effectuate the execution of smaller orders on the opposite side of the market as his larger orders. After obtaining fills, Mr. Gupta allegedly cancelled his large orders. In addition, Mr. Gupta did not answer the formal charges brought by the CME Group, said the relevant BCCs.
For his violations, Mr. Gupta was assessed an aggregate fine of US $150,000 in addition to his trading ban.
Separately, Libin Zhou was charged with matching buy and sell futures trades for his own account and for an account owned by his employer, resulting in the transfer of almost US $25,000 from his employer’s to his own account. These trades occurred from May 2013 through June 2013. Mr. Libin was also accused of making “several" false statements during the course of his interviews with CME Group Market Regulation staff.
In addition to his trading ban, Mr. Libin was ordered to pay a fine of US $100,000 and restitution to his employer.
Finally, Rajasekaran Veeramuthu was also banned from trading on CME Group exchanges and fined US $50,000 for engaging in “a series” of wash sales between accounts with the same beneficial owner from November 21 through December 20, 2012. Mr. Veeramuthu also did not respond to the formal charges brought by CME Group, claimed the relevant BCC.