Two Traders Sued for ‘Spoofing’ on Gold and Silver Futures

(Bloomberg) by Patricia Hurtado – Two traders from the United Arab Emirates were sued by U.S. regulators over claims they were “spoofing” gold and futures markets by placing, then canceling trades. Heet Khara and Nasim Salim, suspended for 60 days by CME Group Inc. last week, should be barred from trading and fined from their illegal profits, the U.S. Commodity Futures Trading Commission said Tuesday in a complaint in New York federal court. The practices they are accused of are similar to those in the case against Navinder Singh Sarao, the British trader facing U.S. charges for allegedly manipulating futures markets for five years and contributing to the 2010 flash crash. Khara and Salim appeared to act “in a coordinated fashion,” as recently as April 28, entering orders for gold and silver futures they never intended to execute, the CFTC alleged. Feigning interest in completing a trade is discouraged because it can drive prices in directions they wouldn’t otherwise move. After telling the merchants to stop doing business with the traders, regulators were unable to contact the two men by phone, according to the complaint. While both Khara and Salim were told by regulators that they should cease all trading … continue reading

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Source: CTRM Center

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