CFTC charges Optiver with oil-market manipulation

[rsmith6621]

Source: Reuters

WASHINGTON (Reuters) - The U.S. Commodity Futures Trading Commission on Thursday charged global trading fund Optiver Holding BV with manipulating the NYMEX oil market in March 2007.

The complaint charged that three employees made about $1 million through manipulation of crude oil, gasoline and heating oil futures on the New York Mercantile Exchange.


According to the complaint, the employees carried out a manipulative scheme known as "banging" or "marking"' the close.

Read more: http://biz.yahoo.com/rb/080724/cftc_oil.html?.v=1

[Tandalayo_Scheisskopf]

1. And guess what.

It is doubtful they are the only ones.

[formercia]

2. Government uncovers oil price manipulation

Source: biz.yahoo.com


CNNMoney.com

Thursday July 24, 11:56 am ET
By Steve Hargreaves, CNNMoney.com staff writer

The government charged an oil trading firm Thursday with manipulating oil prices, the first indictment to come down since the regulators began a new investigation into wrongdoings in the energy markets.


The Commodity Futures Trading Commission charged Optiver Holding, two of its subsidiaries, and three employees, with manipulation and attempted manipulation of crude oil, heating oil and gasoline futures on the New York Mercantile Exchange.
--snip--


"Optiver traders amassed large trading positions, then conducted trades in such a way to bully and hammer the markets," CFTC Acting Chairman Walt Lukken said at a press conference. "These charges go to the heart of the CFTC's core mission of detecting and rooting out illegal manipulation of the markets."
--snip--

Read more: http://biz.yahoo.com/cnnm/080724/072408_cftc.html

---

Stay tuned folks. More at 11.

[spooked911]

3. I bet there is a lot more where that came from

I hope they keep investigating

[sinkingfeeling]

4. But, but, didn't the CFTC just annouce that oil prices were due to supply and demand and not

speculation?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x163990

Edited to add link.

[pampango]

7. Probably a combination of supply/demand and speculation issues.

The "peak oil" crowd would probably say that it is 90% supply/demand, "everything is rigged" crowd would probably say that it is 90% speculation.

Who knows what the actual percentages are. My guess is that supply/demand got the oil price rise started, then speculators saw a bubble in the making and got on board. They see the bubble popping now and will probably make money now by betting that the price of oil will continue to fall.

[depakid]

12. Actually, the peak oil crowd would say that volatility is predicted by the models

and that speculation and currency fluctuations are inevitable as traders realize that output won't significantly increase.

[WriteDown]

13. Very reasoned post....

I think it is a mixture of the two.

[Richardo]

5. Quelle surprise

Pardon my French.

[boomerbust]

6. Breaking

NY ag files suit against UBS.

[Doctor_J]

8. Sherlock Freakin' Holmes!

Nothing gets by these guys. Next up! Halliburton might be engaging in profiteering on the Iraq occupation

[progressoid]

11. Really. Who knew?

[davsand]

9. Gee, Ya THINK?

How many MORE are there out there?



Laura

[Kolesar]

10. Putin used the organs of government to crush the oil "oligarchs" & hence destroy his rivals to power

Is this a corollary?

[RamboLiberal]

14. Traders manipulated oil prices - U.S.

Source: CNN

NEW YORK (CNNMoney.com) -- The government charged an oil trading firm Thursday with manipulating oil prices in the first complaint to be announced since the regulators began a new investigation into wrongdoings in the energy markets.

The Commodity Futures Trading Commission accused Optiver Holding, two of its subsidiaries and three employees with manipulation and attempted manipulation of crude oil, heating oil and gasoline futures on the New York Mercantile Exchange.

"Optiver traders amassed large trading positions, then conducted trades in such a way to bully and hammer the markets," CFTC Acting Chairman Walt Lukken said at a press conference. "These charges go to the heart of the CFTC's core mission of detecting and rooting out illegal manipulation of the markets."

In May, under the backdrop of record oil prices and calls from legislators to crack down on speculative oil trading and market manipulation, the CFTC announced a wide-ranging probe into oil price manipulation. The agency says it has dozens of investigations ongoing.

The complaint filed Thursday names Bastiaan van Kempen, chief executive; Christopher Dowson, a head trader; and Randal Meijer, head of trading at an Optiver subsidiary.



Read more: http://money.cnn.com/2008/07/24/markets/cftc/index.htm?cnn=yes