Thursday, September 28, 2023
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CFTC Whacks Trader for $20 Million

MANHATTAN (CN) - The Chicago trader who owns and operates DRW Investments manipulated the market to make $20 million, and cost others as much in losses, the CFTC claims in court.

The Commodity Futures Trading Commission sued DRW Investments LLC and Donald R. Wilson, both of Chicago, in Federal Court.

The CFTC claims that from January through August 2011, the defendants "unlawfully placed orders for certain futures contracts with the intent to move the prices of the contracts in their favor, to increase the value of the futures contract positions they held in their portfolio. As a result of DRW's manipulative scheme, defendants profited by at least $20 million while their trading counterparties suffered losses of an equal amount."

The "illegal scheme" involved trades in the IDEX USD Three-Month Interest Rate Swap Futures Contract, listed by the International Derivatives Clearinghouse and bought and sold on the NASDAQ OMX Futures Exchange, the CFTC says in the lawsuit.

It seeks disgorgement and damages.

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