Home Business NewsBusiness European banks pay $46.6m to settle US ‘spoofing’ charges

European banks pay $46.6m to settle US ‘spoofing’ charges

30th Jan 18 3:52 pm

Deutsche Bank will pay $30m, UBS $15m and HSBC $1.6m to settle the charges

Three European banks paid a settlement of $46.6m (£33.1m), and eight individuals were charged, in a US probe into alleged manipulation of the futures and commodities market.

The US Justice Department and the country’s derivatives regulator said they had filed civil and criminal charges against three lenders — UBS, Deutsche Bank, HSBC — and eight individuals were charged following a multi-agency probe into “spoofing” in metals and equities futures.

According to media reports, one of the eight individuals named was James Vorley of the UK. He was reportedly based in London and employed as a precious metals trader at a leading financial institution.

While Deutsche Bank and UBS have agreed to pay $30m and $15m respectively to settle the civil charges in the case, HSBC will pay $1.6m, the CFTC said.

DOJ’s acting assistant Attorney General John P Cronan said the alleged conduct “reflects a disturbing and reckless trend of individuals and companies seeking to put illicit gains and profits above honest and law abiding conduct”.

Spoofing, which is a criminal offence under the 2010 Dodd- Frank financial reform law, is said to have had the effect of artificially inflating or deflating prices of futures contracts traded on exchanges in Chicago.

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