CFTC Mizuho Fine for Spoofing

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.


  • 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.