CFTC, ex-trader Krishna Mohan reach settlement

Maria Nikolova

The settlement order recognizes Mohan’s entry into a formal cooperation agreement with the CFTC’s Division of Enforcement.

The United States Commodity Futures Trading Commission (CFTC) has just announced the issuance of an Order filing and settling charges against Krishna Mohan, in which the former trader admits to engaging in manipulative and deceptive schemes involving spoofing (bidding or offering with the intent to cancel the bid or offer before execution).

The spoofing affected a variety of futures contracts traded on the Chicago Mercantile Exchange and Chicago Board of Trade. The Order finds that Mohan engaged in this unlawful activity while trading for his former employer, a proprietary trading firm named as “Firm A” in the Order.

The Order requires Mohan to cease and desist from violating the Commodity Exchange Act’s prohibition on spoofing and the use of manipulative and deceptive schemes. The Order also bans Mohan for three years from trading and other activities in CFTC-regulated markets. In addition, the Order recognizes Mohan’s entry into a formal cooperation agreement with the CFTC’s Division of Enforcement.

The regulator reserves its determination as to monetary sanctions against Mohan in recognition of his agreement to continue to cooperate with the CFTC’s Division of Enforcement.

The Order finds that from at least September 2012 through March 2014 at Firm A, Mohan, individually and in coordination with others, placed thousands of orders to buy or sell futures contracts with the intent to cancel those orders prior to execution. In doing so, he is said to have intentionally sent false signals of increased supply or demand designed to trick market participants into executing against the orders he wanted filled.

The CFTC previously filed charges against Mohan for this conduct in the U.S. District Court for the Southern District of Texas. That action was dismissed without prejudice in connection with the filing of an administrative proceeding.

The CFTC notes that, in a separate action, Mohan has recently pleaded guilty in the Texas Southern District Court of Texas to one count of conspiracy to commit wire fraud, spoofing, and commodities fraud, with regard to conduct similar to that in the CFTC action. The defendant is awaiting sentencing on that charge.

Let’s recall that, earlier in February, the Connecticut District Court approved a Proposed Final Judgment and Consent Order in a case targeting Andre Flotron, a former UBS trader who was accused of engaging in spoofing.

Read this next

Industry News

HollyWally opens office in Portugal to bring B2B2C wallet-as-a-service platform to Europe

“We looked at a number of centers for startups throughout Europe and were attracted straight away to Lisbon. There is great Government support and enthusiasm for startups, it’s well positioned between our Asian and US offices, it’s a cost-effective city in which to base a fintech and it’s a beautiful place.”

Retail FX

Eightcap integrates Acuity’s economic calendar for trade ideas on MT4 or MT5

“By incorporating Acuity’s cutting-edge AI technology into our platform, we are able to offer our clients a powerful new tool that will help them stay ahead of the markets. We are committed to providing an extensive range of tools and educational resources that will enhance our clients’ trading experience and allow them to trade smarter.”

Inside View

Private Equity Renaissance

Recent years have seen a resurgence in the concept of trading physical equities, with a slew of new arrivals joining the market for what is arguably one of the oldest forms of investing. But what has been the driving force behind this change in momentum?

Digital Assets

Dubai introduces new crypto regulations with fines of up to $135,000

Against the backdrop of a crashing market and burned investors, Dubai has sealed a landmark rulebook that governs how the Emirate will regulate cryptocurrency activities.

Institutional FX

FX volume drops 16pct at Russia’s largest exchange in January

The Moscow Exchange, Russia’s largest exchange group, released its monthly batch of trading volumes and metrics for January 2023 – the latest readings showed a pullback across the board for multiple segments, namely in the FX, given lower volatility and a reduced trading schedule.

Institutional FX

Standard Chartered sets up wholly-owned brokerage arm in China

UK-headquartered bank Standard Chartered said its Hong Kong arm has been granted an in-principle approval for a brokerage license from the China Securities Regulatory Commission (CSRC).

Digital Assets

Revolut offers staking for Ether, Cardano, Polkadot, and Tezo

British fintech and banking firm Revolut has introduced crypto staking — a practice of earning rewards for serving as a transaction validator in the Ethereum blockchain – to its UK and European Economic Area (EEA) customers.

Inside View

Saxo releases Q1 2023 Quarterly Outlook: “The Models Are Broken”

“2023 is likely to prove a rough ride for currencies if the USD bear market fails to continue in a straight line, but EUR and JPY may outperform.”

Institutional FX

FXPA welcomes Mesirow as a member of the institutional FX industry body

“Our deep commitment to advancing best practices align well with FXPA’s goals of championing a robust FX market for all industry participants.”