CHICAGO The U.S. Commodity Futures Trading
Commission has agreed to settle a lawsuit it brought against a
trader and his firm for allegedly using a banned trading tactic
known as "spoofing" to manipulate markets, a court document
filed on Wednesday showed.
The CFTC reached an agreement to settle its civil case
against Igor Oystacher and 3 Red Trading, a proprietary trading
company, "subject to the commission's approval," according to
the filing. It contained no details about the settlement.
If it is not approved, the court will "quickly set a new
trial date," the filing said.
In spoofing, a trader tries to create a false appearance of
market interest in a stock or commodity by placing orders and
then immediately canceling them.
Last year, the CFTC accused Oystacher and 3 Red Trading of
spoofing in at least five futures products, including crude oil,
natural gas and copper, for at least 51 trading days from
December 2011 to January 2014.
Oystacher and his firm had denied the charges.
The case is U.S. Commodity Futures Trading Commission v.
Oystacher et al, U.S. District Court, Northern District of
Illinois, No. 15-cv-09196.