FORMER TRADER AGREES TO COOPERATE WITH U.S. COMMODITY FUTURES TRADING COMMISSION AND SETTLES CASE FOR ILLEGAL WASH TRADES
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges against Byron G. Biggs, a former trader for BP Energy Company, for engaging in illegal wash trading on an electronic trading platform. Biggs has agreed to cooperate with the CFTC's Division of Enforcement.
The CFTC order, issued on August 11, 2004, finds that on six occasions between April and June 2000, Biggs executed prearranged trades for electricity contracts at identical prices. On each occasion, according to the order, Biggs agreed to execute a buy or a sell order on the electronic trading platform and then immediately to reverse the transaction by bilaterally executing by telephone an equal and opposite buy or sell. The order finds that these trades resulted in a financial nullity.
The CFTC order finds that Biggs violated the illegal wash sales prohibition contained in the Commodity Exchange Act (CEA). The order further finds that because Biggs caused prices to be recorded on the electronic trading platform that were not true and bona fide, the transactions resulted in the reporting of non-bona fide prices.
The order directs Biggs to cease and desist from further violations of specified provisions of the CEA, pay a $30,000 civil penalty, and comply with specified undertakings, including an undertaking to provide future cooperation to the Commission in its ongoing investigations and litigation of related matters. In consenting to the entry of the CFTC order, Biggs neither admitted nor denied the findings made in the order. A copy of the CFTC order may be found at www.cftc.gov.
The following Division of Enforcement staff were responsible for this case: Kim Bruno, William O. Hoar, Maura Viehmeyer, Laura Gardy, Michael Solinsky, Gretchen L. Lowe, and Richard Wagner.
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