CFTC says settlement with ex-UBS precious metals trader is unlikely

Maria Nikolova

The US regulator and Andre Flotron agree that settlement is unlikely at this time.

Settlement is unlikely for the time being in a civil case against ex-UBS precious metals trader Andre Flotron. The latest filings with the Connecticut District Court show that the parties are not willing to settle at this point.

The case was brought by the Commodity Futures Trading Commission (CFTC) in January this year. Flotron, a Swiss national, was employed by UBS from 2008 to 2013 as a precious metals trader.

The CFTC alleges that Flotron engaged in a manipulative and deceptive scheme in the precious metals futures market. Specifically, the CFTC alleges that he repeatedly engaged in the practice of spoofing – placing an order with the intent to cancel it before execution. According to the regulator, the defendant placed large orders that he intended to cancel before execution opposite small orders he desired to execute. By placing the large orders, the defendant intended to send market participants a false signal of increased supply or a false signal of increased demand and thereby trick market participants into executing against his smaller orders.

The CFTC seeks a permanent injunction, civil monetary penalties and other equitable relief.

In April this year, Flotron managed to beat the criminal case against him, as he was found not guilty of scheming to manipulate the futures markets via spoofing. The ex-UBS trader was acquitted of conspiracy to engage in commodities fraud.

In the meantime, a case against an Australian trader accused of spoofing, is gradually gaining momentum. Jiongsheng (“Jim”) Zhao is currently facing extradition proceedings in the Commonwealth of Australia. On May 21, 2018, Zhao consented to extradition to the United States.

In January, the United States Department of Justice charged Zhao in a criminal complaint with wire fraud, commodities fraud, making false statements to the CME, and spoofing offenses when he was a trader at a proprietary trading firm located in Sydney, Australia. According to the complaint, data analysis identified hundreds of instances of spoofing by Zhao on the CME between approximately July 2012 and March 2016. Furthermore, the complaint alleges that Zhao made false written statements to the CME after being confronted with allegations of his disruptive trading practices.

Read this next

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

<