A Panel of the Chicago Board of Trade (the "Panel") Probable Cause Committee ordered a trader to pay $50,000 for entering orders without the intention to execute (i.e., "spoofing").
According to the Panel, the trader, who is not a member of the Chicago Mercantile Exchange ("CME"), placed orders in CBOT Oats and Rough Rice markets to gauge the depth of the order book during the pre-opening period. The alleged entry and cancelation of these non-bona fide transactions between February and July 2016 caused the indicative opening price to fluctuate.
By failing to answer the charge, the Panel determined, the trader admitted to it and waived his right to a hearing.
In addition to being ordered to pay the fine, the trader was suspended from trading on any CME trading or clearing platforms for one year.
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