October 19, 2016 / 7:36 PM / a year ago

U.S. CFTC agrees to settle lawsuit against accused 'spoofer'

CHICAGO (Reuters) - 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.

Reporting by Tom Polansek; Editing by Will Dunham

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