Looks like CFTC is on a bit of a roll. Wondering when the SEC might get off it's butt and do the same.
Quote:
RELEASE: pr7623-17
September 29, 2017
CFTC Orders Logista Advisors LLC to Pay $250,000 for Supervision Failures Related to Spoofing on a Foreign Futures Exchange
Washington, DC – The Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Logista Advisors LLC (Logista), a crude-oil-trading firm based in Houston, Texas. The Order finds that, from approximately September 2013 through October 2014, Logista failed to diligently supervise the handling by its employees and officers of commodity interest accounts and other activities relating to Logista’s business as a CFTC registrant, particularly in connection with its former employee’s improper crude oil futures trading on a foreign exchange and Logista’s response to the exchange’s inquiry into that trader’s misconduct. Logista is registered with the CFTC as a Commodity Trading Advisor and Commodity Pool Operator.
The Order requires Logista to pay a $250,000 civil monetary penalty and cease and desist from violating the CFTC Regulation governing diligent supervision.
The Order finds that the employee who was primarily responsible for Logista’s crude oil futures trading from approximately September 2013 through September 2014 was given inadequate training, direction, and supervision, which resulted in him repeatedly engaging in the disruptive trading practice commonly known as “spoofing” (i.e., bidding or offering with the intent to cancel his bid or offer before execution), while trading futures on a foreign futures exchange. After the trader’s misconduct, which occurred in August 2014, was detected by the exchange’s compliance department, Logista failed to satisfy its obligation to supervise an appropriate investigation that would enable Logista to provide accurate responses to the exchange’s inquiries.
The CFTC thanks the U.K. Financial Conduct Authority for its assistance in this matter.
CFTC Division of Enforcement staff members responsible for this action are Christopher Giglio, David C. Newman, Candice Aloisi, Jason Fairbanks, Lenel Hickson, Jr., and Manal M. Sultan.
Media Contact
Dennis Holden
202-418-5088
Last Updated: September 29, 2017
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