Two traders from the United Arab Emirates were sued by U.S. regulators over claims they were "spoofing" gold and futures markets by placing bids and offers they intended to cancel before execution.
The traders, Heet Khara and Nasim Salim, suspended for 60 days by CME Group Inc. last week, should be permanently barred from trading and fined from their illegal profits, the U.S. Commodity Futures Trading Commission said Tuesday in a complaint in Manhattan 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. ...
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