U.S. regulators on Tuesday sued a futures broker and two trading companies for attempting to manipulate wheat futures prices by electronically entering and immediately cancelling orders they did not intend to fill.
The Commodity Futures Trading Commission said Eric Moncada, who worked for BES Capital LLC and Serdika LLC in New York, in October 2009 entered and canceled within seconds numerous orders for 200 or more wheat contracts on the Chicago Board of Trade.
Moncada, BES and Serdika could not be reached for comment. The companies, which have ceased trading, shared offices and ownership, the CFTC said in the court documents. Moncada is currently working as a futures trader in New York, the CFTC said.
CME Group, owner of the Board of Trade, did not immediately respond to a request for comment.
Through his alleged scheme, Moncada attempted to create a misleading impression of increasing liquidity to move prices upward and downward at different times, the CFTC said in the complaint
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