A registered floor broker, self-employed as a trader, agreed to settle CFTC charges for "spoofing" in the futures market.
According to the CFTC, Benjamin Cox violated CEA Section 4c(a)(5)(C) ("Prohibited Transactions") by making bids and offers with the intent to cancel the bids or offers before execution of E-mini S&P 500 and the E-mini 100 futures, traded on the Chicago Mercantile Exchange. The CFTC stated that Mr. Cox placed the spoof orders in order to influence other market participants to fill his genuine orders.
To settle the CFTC charges, Mr. Cox agreed to (i) cease and desist from violating CFTC rules further and (ii) pay a civil monetary penalty of $150,000.
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