United States:
CBOT Bans Trader For Prohibited Wash Trades
27 February 2020
Cadwalader, Wickersham & Taft LLP
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The Business Conduct Committee ("BCC") of the Chicago
Board of Trade ("CBOT") banned a trader violating rules prohibiting
wash trades and committing other trade-related offenses,
including:
- transferring equity between accounts through the execution of
several non-competitive round-turn money pass transactions in the
Corn, Soybean and Wheat futures markets; and
- entering matching buy and sell orders for different accounts in
order to match the orders opposite each other, and ultimately avoid
market risk.
The BCC permanently banned the trader and fined him $60,000.
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