Former Enron trader accused of price manipulation
Over one year after the collapse of Enron, the US Commodity
Futures Trading Commission (CFTC) has filed a complaint in the
federal district court in Houston, charging the energy giant
with operating an illegal futures exchange and trading an
illegal, off-exchange agricultural futures contract. CFTC also
charged Enron and a former Enron natural gas trader with price
CFTC said Enron released a new version of its trading
platform, Enron Online (EOL), that included the ability for
outside users to post bids and offers on the system. EOL also
listed at least three swaps that CFTC said were effectively
futures contracts. According to the regulator, with this
modification, Enron should have registered or designated EOL
with CFTC or notified CFTC that EOL was exempt from
registration. "Enron failed to do either of these things and
the complaint charges that, because of this failure, EOL became
an illegal futures exchange," CFTC said.
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