Tuesday, June 25, 2024

CFTC Fees Glen Level Capital for FX Market Manipulation

by Jeremy

On Thursday, the Commodity Futures Buying and selling Fee (CFTC ) within the U.S. filed a civil enforcement motion towards two Glen Level Capital entities and Neil Phillips, their Co-Founder and Co-Chief Funding Officer, for market manipulation to set off the payout of two binary choices contracts.

Together with the preliminary fees, the regulatory company introduced further fees towards the defendants for failing to oversee the buying and selling actions of their “officers, workers, and brokers.”

Glen Level Capital Advisors LP and Glen Level Capital LLP are two CFTC-registered commodity pool operators. They have been holding two sizeable binary choice contracts tied to the U.S. greenback (USD) to South African rand (ZAR) trade fee, with a $30 million payout situation if the USD/ZAR trade fee fell under sure ranges earlier than the contract expiry.

A Blunt Manipulation Try

In line with the official press launch, Phillips manipulated the USD/ZAR fee on two events in late December 2017 when there was low market liquidity within the spot market. He supposed to push the forex pair value all the way down to a sure stage in order that his firm might earn the binary choices payouts.

Take a look at the latest London Summit session on “Liquidity Between Retail & Institutional Buying and selling.”

He orchestrated buying and selling an enormous quantity of the USD/ZAR pair. He even expressed his manipulative intent by explicitly informing the financial institution salesperson of his goal to commerce by way of the speed of 12.50 rand per greenback, which is the triggering level of the binary choices contracts. He even repeatedly requested in regards to the quantity of the forex pair he wanted to promote to take the costs to the specified stage. He instantly stopped promoting when the goal value of the forex pair was achieved.

“Manipulative and misleading conduct undertaken in reference to swaps harms market integrity and market members, and we’ll take motion to carry those that commit any such misconduct accountable,” mentioned Performing Director of Enforcement Gretchen Lowe.

The CFTC is now looking for civil financial penalties, disgorgement of any ill-gotten beneficial properties, and everlasting buying and selling and registration bans on the defendants. The company additional desires a everlasting injunction of the defendants towards additional regulatory violations.

In the meantime, different U.S. companies are additionally doubling down on their actions towards market manipulation. Most just lately, the Securities and Alternate Fee charged eight monetary influencers for utilizing Twitter and Discord to drag off a $100 million pump-and-dump scheme.

On Thursday, the Commodity Futures Buying and selling Fee (CFTC ) within the U.S. filed a civil enforcement motion towards two Glen Level Capital entities and Neil Phillips, their Co-Founder and Co-Chief Funding Officer, for market manipulation to set off the payout of two binary choices contracts.

Together with the preliminary fees, the regulatory company introduced further fees towards the defendants for failing to oversee the buying and selling actions of their “officers, workers, and brokers.”

Glen Level Capital Advisors LP and Glen Level Capital LLP are two CFTC-registered commodity pool operators. They have been holding two sizeable binary choice contracts tied to the U.S. greenback (USD) to South African rand (ZAR) trade fee, with a $30 million payout situation if the USD/ZAR trade fee fell under sure ranges earlier than the contract expiry.

A Blunt Manipulation Try

In line with the official press launch, Phillips manipulated the USD/ZAR fee on two events in late December 2017 when there was low market liquidity within the spot market. He supposed to push the forex pair value all the way down to a sure stage in order that his firm might earn the binary choices payouts.

Take a look at the latest London Summit session on “Liquidity Between Retail & Institutional Buying and selling.”

He orchestrated buying and selling an enormous quantity of the USD/ZAR pair. He even expressed his manipulative intent by explicitly informing the financial institution salesperson of his goal to commerce by way of the speed of 12.50 rand per greenback, which is the triggering level of the binary choices contracts. He even repeatedly requested in regards to the quantity of the forex pair he wanted to promote to take the costs to the specified stage. He instantly stopped promoting when the goal value of the forex pair was achieved.

“Manipulative and misleading conduct undertaken in reference to swaps harms market integrity and market members, and we’ll take motion to carry those that commit any such misconduct accountable,” mentioned Performing Director of Enforcement Gretchen Lowe.

The CFTC is now looking for civil financial penalties, disgorgement of any ill-gotten beneficial properties, and everlasting buying and selling and registration bans on the defendants. The company additional desires a everlasting injunction of the defendants towards additional regulatory violations.

In the meantime, different U.S. companies are additionally doubling down on their actions towards market manipulation. Most just lately, the Securities and Alternate Fee charged eight monetary influencers for utilizing Twitter and Discord to drag off a $100 million pump-and-dump scheme.

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