Three banks agreed to pay fines to settle CFTC charges that the banks engaged in spoofing to manipulate futures markets. In addition, the CFTC charged six individuals with spoofing violations. Spoofing involves placing bids or offers on futures products with the intent to cancel the orders before execution. Spoofing is utilized in order to create an appearance of market depth.
HSBC Securities (USA) Inc. agreed to pay a $1.6 million fine to settle the charges. UBS AG agreed to pay a $15 million fine to settle the charges. Deutsche Bank AG and Deutsche Bank Securities Inc. agreed to pay $30 million to settle the charges. In addition to the fines, the banks agreed to implement new training programs, systems and controls in order to identify and prevent spoofing among traders.
No admissions were made in connection with the settlements.
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