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Under the
agreement, Igor Oystacher and his proprietary trading firm, 3Red
Trading LLC, have also agreed to the hiring of an independent
monitor to assess their future trading for potential violations
for the next three years, the CFTC said.
The settlement, which U.S. District Judge Amy St. Eve in Chicago
approved on Tuesday, came after the disclosure in October that a
deal had been reached to resolve the lawsuit, which was filed in
October 2015.
In its lawsuit, the CFTC contended that Oystacher and 3Red
repeatedly used spoofing in several major futures contracts,
including the e-mini S&P 500 futures <ESc1>, along with crude
oil, natural gas and copper futures, and the volatility index
<.VIX> futures contract between December 2011 and January 2014.
Spoofing is where a trader creates a false appearance of market
interest in a stock or commodity by placing orders and then
immediately withdrawing them. Oystacher's firm is required to
submit to monitoring along with using additional compliance
tools.
Oystacher and his firm had denied the charges. As part of the
settlement, the defendants neither admitted nor denied
wrongdoing, court papers show.
The case is U.S. Commodity Futures Trading Commission v.
Oystacher et al, U.S. District Court, Northern District of
Illinois, No. 15-cv-09196.
(Reporting by David Gaffen and Nate Raymond in New York; Editing
by Matthew Lewis)
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