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

Institutional FX

FXSpotStream volumes hit 14-month high in November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2023, which moved higher on a monthly basis.

Digital Assets

Circle denies ties with Palestinian groups, TRON founder

Stablecoin issuer Circle has denied allegations that it facilitates funding for terrorist organizations.

Retail FX

CySEC hits operator of Titanedge, TradeEU with €90,000 fine

The Cyprus Securities and Exchange Commission (CySEC) announced that it has imposed a fine of €90,000 on Titanedge Securities Ltd due to shortcomings in their regulatory obligations.

Institutional FX

Cboe FX volumes retreats slightly in November 2023

Cboe’s institutional spot FX platform today announced its trading volume for the month ending November 2023, which took a step back after a strong rebound in October.

Institutional FX

Alpha Group seals Cobase majority acquisition

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) has finalized its acquisition of Financial Transaction Services, operating as Cobase.

Digital Assets

TMNG Tokens Successfully Listed on MEXC Crypto Exchange

TMN Global proudly announces the successful listing of its native TMNG token on the MEXC crypto exchange, effective December 1st, 2023. This strategic partnership marks a significant milestone for TMN Global in the crypto space.

Institutional FX

Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Digital Assets

Talos introduces decentralized liquidity and onchain settlement with Uniswap and Fireblocks

“At the cornerstone of the DeFi ecosystem, Uniswap has the breadth of assets and depth of liquidity that institutional traders need. And to have this partnership powered by Fireblocks, a digital assets infrastructure provider trusted by some of the most renowned institutions, is very fitting.”

Digital Assets

FINMA-regulated crypto bank SEBA Bank rebrands to AMINA

“As we look forward to 2024, our ambition is to accelerate the growth of our strategic hubs in Switzerland, Hong Kong, and Abu Dhabi, and to continue our global expansion, building on all the successes we have laid down over the past years.”