On Sep. 21, CFTC fined Mizuho $250k for futures spoofing.
- Mizuho Bank Ltd settled CFTC charges, for engaging multiple acts of spoofing.
Alleged Violations
- A trader engaged in spoofing on CME, CBOT in US Treasury, Eurodollar futures.
- Engaged in activity through trader, who accessed markets via Singapore office.
- Trader placed large buy and sell orders via platform, and then cancelled these.
- This strategy was used by trader, to test the markets' reaction to spoof orders.
- CFTC enforcement director McDonald, said spoofing to test market is unlawful,
undermines the integrity of market, even if not done to manipulate for a profit.
Sanctions
- Mizuho fined $250k, will cease and desist from ignoring veto against spoofing.
- Fine significantly reduced, due to bank cooperation and proactive remediation.
- Commenced internal review, launched an overhaul of its systems and controls.
- Revised policies, updated training, implemented systems, to identify spoofing.
