CFTC Spoofing in Commodities

On Sep. 20, CFTC fined Geneva $1.5mn for commodity spoofing.

  • Geneva Trading USA charged with disruptive practices, via three employees.

Alleged Violations

  • Order found all three unidentified traders used the same pattern of spoofing.
  • Manually placed smaller orders on one side of market at or near best prices,
    while placing larger order or series of orders, on opposite side of the market.
  • Large orders were often modified to avoid being filled, before were cancelled.
  • Traded contracts included agricultural, energy, and precious metals markets.
  • Commodities include gold, heating oil, RBOB gasoline, lean hogs, live cattle.


  • Fined $1.5mn and cease and desist re violating prohibition against spoofing.
  • Geneva’s early resolution of matter, helped to reduce civil monetary penalty.
  • Order finds that Geneva cooperated in the investigation and remediated and
    enhanced its compliance systems and polices related to manipulative trading.