The US CFTC has issued an Order filing and settling charges against David Liew for engaging in numerous acts of spoofing, attempted manipulation, and, at times, manipulation of the gold and silver futures markets.
Liew engaged in this unlawful conduct for more than two years while he was employed as a junior trader on the precious metals desk for a large financial institution. The CFTC Order finds that Liew acted individually and in coordination with traders at that institution and with a trader at another large financial institution.
In the Order, Liew admits the facts of his manipulation and spoofing activity and acknowledges that his conduct violated the Commodity Exchange Act (CEA) and Commission Regulations.
The Order permanently bans Liew from trading commodity interests and requires him to comply with undertakings never to engage in other commodity-interest related activities, including seeking registration, acting in a capacity requiring registration, or acting as a principal, agent, officer or employee of any person registered, required to be registered or exempt from registration.
In accepting Liew’s offer of settlement, the CFTC recognises Liew’s cooperation during the Division of Enforcement’s (Division) investigation of this matter, including his entry into a formal Cooperation Agreement with the Division, his provision of substantial assistance to the investigation, and his undertaking to continue to cooperate with the Commission, the Division and any other governmental agency in connection with the subject matter of this Order.
James McDonald, the CFTC’s Director of Enforcement, says: “Today’s enforcement action demonstrates that the Commission will aggressively pursue individuals who manipulate and spoof in our markets. Today’s action also shows that while holding individuals accountable for their conduct, the Commission will give meaningful cooperation credit to those who acknowledge their own wrongdoing, enter into a Cooperation Agreement and provide substantial assistance to the Division in its investigations and enforcement actions against others who have engaged in illegal conduct.”
