The Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges against Shinhan Securities Co. Ltd., a financial services company, for engaging in wash sales and non-competitive transactions on NYMEX.
Shinhan is required to pay a $212,500 civil monetary penalty and cease and desist from further violations of the Commodity Exchange Act and CFTC regulations, as charged.
A Shinhan trader entered near-simultaneous bids and offers for the same quantities of the same futures contract for trading accounts that had the same beneficial owner to enhance the likelihood that his buy and sell orders would be filled at the same or similar price, which offset trades upon execution.
In doing so, Shinhan negated the risk or price competition incidental to an open and competitive marketplace.
