US Court orders 60-day stay of civil action against ex-UBS trader accused of spoofing

Maria Nikolova

Judge Vanessa L. Bryant granted the motion to stay the CFTC action against Andre Flotron until September 18, 2018.

In line with a request by both the plaintiff and the defendant in a spoofing case, Judge Vanessa L. Bryant of the Connecticut District Court on Tuesday ordered a stay of the civil action against ex-UBS precious metals trader Andre Flotron.

The Order stipulates that the action brought by the Commodity Futures Trading Commission (CFTC) in January this year is stayed until September 18, 2018.

Let’s recall that the parties moved the Court for a 60-day stay of this matter in contemplation of settlement. In support of their motion, the CFTC and Flotron stated that the Division of Enforcement and the defendant reached an agreement in principle that would resolve all of the Commission’s claims against Flotron and would conclude this litigation in its entirety.

The CFTC alleges that Andre Flotron engaged in a five-year manipulative and deceptive scheme to trick other traders in the precious metals futures market. The regulator says that he placed large bids and offers with the intent to cancel them before execution. Under the allegations, he intended for these “spoof” orders to induce other market participants to transact on smaller, “genuine” orders that he placed on the opposite side of the market.

The CFTC Complaint describes a particular pattern in which Flotron repeatedly placed large orders in same-digit amounts (e.g., 33 lots, 55 lots, 111 lots) opposite small orders in single-digit amounts (e.g., 1 lot, 5 lots, 7 lots). While the small orders were usually placed at the best bid or best offer, he placed the large orders away from the best bid or offer, where they were less likely to be filled. After the small orders were filled, he cancelled the large order. The CFTC Complaint details nine specific examples that are illustrative of the pattern described above.

The CFTC alleges that Flotron traded in this manner from at least 2008 through 2013.

Furthermore, the CFTC says that in 2008, Flotron taught a subordinate to place orders in a similar pattern and, in doing so, he revealed his motive and intent to trick other market participants.

The CFTC accuses the defendant of violations of the anti-spoofing provision of the Commodity Exchange Act (Count I), and of violations of the Act’s and Commission Regulations’ prohibition on manipulative and deceptive devices (Count II).

The case is captioned Commodity Futures Trading Commission v. Flotron (3:18-cv-00158).

Read this next

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.

Crypto Insider

DeFi Winter Thaws: A Look at the Emerging Landscape

The past year has seen a significant shift in the Decentralized Finance (DeFi) market, transitioning from a period of decline (“DeFi winter”) to a potential season of growth.

Digital Assets

KuCoin announces $10 million airdrop as users withdraw $1.2 billion

KuCoin – the fourth-largest crypto exchange in the world by trading volume – today announced plans to distribute $10 million worth of Bitcoin and its native KCS token via an airdrop event.

Reviews

Transform Your Financial Future with ARKMining’s Innovative Blockchain Solutions

Learn About Daily Passive Income Through Cryptocurrency with ARKMining: A Guide to Secure Practices.

<