Mirae Asset Daewoo, a South Korean company, has been fined $700,000 for spoofing the Chicago Mercantile Exchange between December 2014 and April 2016.
Spoofing is the illegal form of market manipulation when a trader places a large order to buy or sell a financial asset without any inclination of going through with the deal.
That is exactly what the Commodity Futures Trading Commission (CFTC) alleged that Daewoo Securities, a company that is now owned by Mirae Asset Daewoo, did during the period by placing several orders for the E-mini contract with the intent of cancelling those orders before execution.
These actions violated the Commodity Exchange Act.
Mirae Asset Daewoo has cooperated with the CFTC, leading to the regulator reducing the fine.
“This enforcement action demonstrates, once again, that the Commission will hold overseas entities that spoof in our markets accountable,” said James McDonald, director of enforcement at the CFTC.
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