The Manipulation Standard and a Setback for CFTC

The Manipulation Standard and a Setback for CFTC

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An article by Paul Architzel, Anjan Sahni and Matthew Beville published in Law360, discusses a recent decision by Judge Analisa of the Southern District of New York that provides important protections to market participants engaged in legitimate trading strategies and is a blow to the Commodity Futures Trading Commission's effort to lower the standard for proving price manipulation. This decision may hinder the CFTC's ability to prosecute manipulation cases under the new anti-manipulation provisions added by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

On Sept. 30, 2016, Judge Analisa Torres of the Southern District of New York issued an order resolving competing motions for summary judgment in the U.S. Commodity Futures Trading Commission's ongoing action against Donald R. Wilson and his firm, DRW Investments LLC (together, DRW), for allegedly manipulating and attempting to manipulate the settlement price of certain interest rate futures contracts.[1] The order provides important guidance regarding the requisite intent to establish a manipulation or attempted manipulation claim under the Commodity Ex change Act. Read the full article

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