MGEX EDF Man Wash Trade Fine

On Feb. 24, MGEX fined E D & F Man $25k for use of wash trades.

  • E D & F Man Capital Markets were charged for conducting internal exercises and
    assignments on Hard Red Spring Wheat options that were not reported to MGEX.
  • Breach rule 2.1.6 supervision, 743.00 prohibition on accommodation/wash trade.


  • Thus, MGEX did not formally exercise in-the-money options nor assign the notice of intent to the proper clearing member in accordance with expiration procedures.
  • ED&F entered offsetting orders for buying and sales same month, of same HRSW
    futures, for customers with same beneficial ownership, resulting in wash trades.


  • The settlement terms were accepted in satisfaction of the charges with $25k fine.