CFTC wants $660,000 fines to prove 3red Oystacher’s spoofing

Rick Steves

The Commodity Futures Trading Commission has opened a law suit against 3Red Trading LLC and its Founder Igor Oystacher in October 2015, accusing him of spoofing – canceling orders just before entering them to trick traders by creating a false impression of demand – a practice made illegal since the Dodd-Frank Act in 2010. While […]

The Commodity Futures Trading Commission has opened a law suit against 3Red Trading LLC and its Founder Igor Oystacher in October 2015, accusing him of spoofing – canceling orders just before entering them to trick traders by creating a false impression of demand – a practice made illegal since the Dodd-Frank Act in 2010.

While Oystacher’s defense argues that his skills at speed-chess and costumized trading equipment, including hardware, are behind his extraordinary speed at executing trades, the CFTC now wants to use his past court history as evidence: previous enforcement actions brought by CME Group Inc., Intercontinental Exchange Inc. (ICE), and Deutsche Boerse AG’s Eurex, have cost Oystacher $660,000 in fines.

3red
Source: 3Red

The total figure came as the result of eight spoofing investigations conducted by the three claimants over a four-year period, in which the trader neither admitted nor denied wrongdoing. Should the federal court in Chicago accept it as evidence of pattern of intent, CFTC could be successful at accomplishing its goal of banning Oystacher from trading. A hearing on the issue is due on Monday, April 25.

The CFTC commented on the case: “The exchange spoofing evidence also counters the fiction that Oystacher was an innocent actor, trying his best to comply, who now unwittingly finds himself subject to the arbitrary whims of the commission. Oystacher professes that he had no idea or notice that his trading constituted spoofing, that he is committed to compliance, and that he conducted his trading strategy in good faith. Plainly speaking, these are brazen fabrications.”

Among witnesses the CFTC intends to call as witnesses are Karsten Hiestermann, Director of the Exchange Supervisory Authority of Hesse (which regulates Eurex), and 3Red COO Stephen Strohmer, and Edwin Johnson, co-founder of 3Red in a legal battle with Oystacher since 2014, exchanging accusations.

Johnson alleged that CME Executive Chairman Terry Duffy and ICE Chief Strategy Office David Goone knew about the spoofing and that assured that “Oystacher’s trading practices were legal and legitimate.”

 

Read this next

Industry News

UK FCA provides guidance ahead of anti-greenwashing rule

“Consumers care about investing in products that have a positive impact on the planet and people. That’s why we want to boost the integrity of the market and ensure people can make informed decisions about how to invest their money.”

Retail FX

Moomoo onboards 100,000 Malaysian clients in six weeks

“We are committed to enhancing the investment experience with smarter tools and deeper insights. Our mission is to not only grow with the Malaysian market but to lead it, shaping the future of investing in the region.”

Institutional FX

Clearwater completes acquisition of Wilshire’s analytics solutions

“Our vision is to create the preeminent investment management solution for firms around the globe. Clearwater’s integrated platform eliminates the need for multiple data reconciliations, serving as a reliable singular source of truth.”

Fintech

BizCuits integrates DXtrade platform for CFD brokers and props

The DXtrade platform features built-in trading journals, performance dashboards, responsive charting, and mobile trading apps.

Chainwire

Decoding Bitcoin’s Future: Bybit Insights on Halving, ETFs, and Macro Shifts

In a riveting panel discussion hosted by Bybit, one of the world’s top three crypto exchanges by volume, key figures from the crypto industry gathered to discuss crypto and global finance.

Digital Assets

CoinMENA taps Zodia Markets for enhanced liquidity

“With Zodia Markets we substantially enhanced our service offering and can provide investors with more efficient avenues for entering and exiting the digital assets market, with minimal transaction costs and efficient settlement.”

blockdag

BlockDAG’s Rise: A Potential $20 By 2027 Against Bitcoin And Ethereum Classic’s Fluctuations, Achieving $19.5M In Presale

With projections setting BlockDAG’s value to soar to $20 by 2027, its innovative ASIC mining rigs and a strategic lunar keynote teaser enhance its allure as the top long-term cryptocurrency investment.

Chainwire

Unveiling the KARRAT Protocol: Pioneering the Next Era of Gaming, Entertainment, and AI Innovation, Reshaping Hollywood and Beyond

$KARRAT is the governance token of the KARRAT Protocol. Using $KARRAT, the community will determine how the KARRAT Protocol is integrated into games and products, empowering the community of players and consumers, much more than traditional entertainment titles have.

Digital Assets

FTX customers drop claims against Sam Bankman-Fried

Former FTX CEO Sam Bankman-Fried has reached a preliminary settlement agreement with a group of FTX customers who have decided to drop their class action lawsuit against him.

<