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CFTC charges proprietary trader with spoofing in soybean futures markets

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Staff Writer |
America   The CFTC Order requires Crepeau to pay a $120,000 civil monetary penalty

The Commodity Futures Trading Commission (CFTC) issued an Order filing and settling charges against Kevin Crepeau, of Chicago, Illinois, a trader at a proprietary trading firm, for engaging in spoofing in the Chicago Mercantile Exchange (CME) soybeans futures market.

The CFTC Order requires Crepeau, among other things, to pay a $120,000 civil monetary penalty, and imposes a four-month suspension from trading on all registered entities and in all commodity interests.

The CFTC Order finds that between August 2013 and June 2016, Crepeau placed orders to buy or sell futures contracts on soybeans, soybean meal, and soybean oil with the intent to cancel the orders before execution.

According to the Order, Crepeau used an automated tool to place relatively small bids or offers on one side of the market (Genuine Orders) and Crepeau manually placed relatively large bids or offers on the opposite side of the market (Spoof Orders).

Crepeau placed the Spoof Orders with the intent to induce other market participants to fill his Genuine Orders on the opposite side of the market and cancelled the Spoof Orders after the Genuine Orders had been filled. The Order finds that Crepeau repeated this trading pattern numerous times.

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