The Commodity Futures Trading Commission sued Daniel Shak in a federal court in the District of Columbia, claiming he violated an agreement entered just a few months earlier that he would not trade any exchange-traded derivatives contracts under CFTC oversight during the closing period for two years. Mr. Shak signed this agreement to settle a CFTC enforcement action which had alleged that, on two days in 2008, he attempted to manipulate the price of crude oil futures traded on the New York Mercantile Exchange, and violated speculative position limits. Part of the wrongdoing, said the CFTC, involved Mr. Shak trading during the closing period. The CFTC alleged that Mr. Shak violated his agreement when, on May 22, 2014—less than six months after signing it—he traded gold futures during the closing period. The CFTC seeks an order forever barring Mr. Shak from trading exchange-traded derivatives at any time, among other relief.
Totally Irrelevant (But Is It?): One of the best lead sentences in any news story I have seen in a long time was Silla Brush’s opening line in his article regarding this matter that appeared on Bloomberg.com on September 30: “If a U.S. regulator has its way, Daniel Shak will soon have more time to focus on gambling at poker tables and none at all to spend betting on derivatives.” Mr. Brush previously had discovered that Mr. Shak was a competitor in the World Series of Poker where he has earned more than US $700,000. (Click here to see Mr. Brush’s full article.)