CFTC Nails Minnows In Ongoing PR Campaign
Thursday, July 24, 2008 - 12:34 pm
The CFTC is doing a heckuva job in the hunt for nefarious energy manipulators. While I continue to have my own theories over Morgan Stanley's call on June 6th, which turned into a self-fulfilling prophecy to some extent, the CFTC is trying to justify its existence and nailed a couple of small-time traders:
The Commodity Futures Trading Commission on Thursday charged a global trading fund, Optiver Holding, with manipulating the oil market New York Mercantile Exchange in March 2007.
The complaint charged that three employees made about $1 million through manipulation of crude oil, gasoline and heating oil futures on the New York Mercantile Exchange. The three employees were identified as Christopher Dowson, the head trader of Optiver; Randal Meijer, the head of trading and supervisor of Optiver; and Bastiaan van Kempen, the chief executive of Optiver.
According to the complaint, the employees carried out a manipulative scheme known as “banging” or “marking”’ the close. “Banging the close” refers to the practice of acquiring a substantial position leading up to the closing period, followed by offsetting the position before the end of trading for the purpose of trying to manipulate prices. Reuters
The CFTC is looking at "dozens and dozens" of cases. The next perp walk might include kids who shoplifted chewing gum from a service station. What a joke.
CFTC charges Optiver with oil-market manipulation
Reuters
Defendant Caught on Tape and in Email Saying He Would “Bully” the Market
CFTC Website
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