A commodity trading firm agreed to settle CFTC charges of attempting to manipulate the price of certain futures and options contracts.

According to the CFTC Order, Lansing Trade Group, LLC ("Lansing") implemented a trading strategy designed to affect the price of certain wheat futures and options contracts traded on the Chicago Board of Trade ("CBOT") by purchasing and canceling wheat shipping certificates.

The CFTC stated that CBOT wheat futures are intended to be delivered at expiration, with the delivery instrument taking the form of a shipping certificate. The total number of shipping certificates registered with an exchange, which is published daily, serves as an important source of price information for the market. By canceling the certificates and designating the physical grain to be loaded out for delivery, the CFTC asserted, Lansing attempted to send a false or misleading signal to the market regarding the demand for the Wheat Certificates and, therefore, increase the value of some spread and call option positions. Further, the CFTC alleged that a Lansing trader coordinated with a newsletter writer to disseminate information that would positively impact Lansing's positions. In a separate charge, the CFTC accused a Lansing trader of conspiring with a commodity broker to manipulate the cash price of corn.

Without admitting or denying the CFTC allegations, Lansing agreed to pay $3.4 million to settle the matter.

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