US court entered an order against Welsh over trying to rig metals futures
The US Commodity Futures Trading
Commission (CFTC) ordered on Friday a $500,000 civil penalty
against a former MF Global broker over attempted manipulation
of settlement prices of metals futures contracts.
The regulator said that a federal court in
New York has entered a consent order against Joseph Welsh over
charges that he attempted to manipulate palladium and platinum
futures contract settlement prices, traded on CME
Group’s New York Mercantile Exchange (Nymex).
The order alleges that while working as a
broker at now-defunct MF Global, from at least June 2006
through May 2008, Welsh received "market-on-close orders to buy
palladium and platinum futures contracts from Christopher Louis
Pia, a former portfolio manager of Moore Capital Management LLC
(a predecessor of Moore Capital Management, LP), with
instructions to exert upward pressure on prices."
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