Citigroup Punished for Treasury Market Spoofing by Five Traders
- Bank becomes largest firm penalized for the illegal practice
- Citigroup’s $25 million fine biggest to date for spoofing
This article is for subscribers only.
Five Citigroup Inc. traders manipulated the U.S. Treasury futures market more than 2,500 times, according to regulators, who imposed a fine of $25 million on the bank, the highest profile firm to be penalized for the illegal trading strategy known as spoofing.
The traders, who weren’t named by the U.S. Commodity Futures Trading Commission, were Stephen Gola, Jonathan Brims, Shlomi Salant, Jeremy Lao and Daniel Liao, according to a person briefed on the investigation who asked for anonymity to discuss a private matter. The abuses allegedly occurred between July 2011 and December 2012.