The U.S. Commodity Futures Trading Commission has settled charges against two former Citigroup Global Markets Inc. traders for spoofing in U.S. Treasury futures markets.
The order requires Stephen Gola to pay a $350,000 civil monetary penalty and Jonathan Brims to pay a $200,000 civil monetary penalty. Additionally, the regulatory body banned the pair from trading in the futures markets for six months after each trader pays his respective penalty.
The order found that between July 16, 2011, and Dec. 31, 2012, Gola and Brims each practiced spoofing more than 1,000 times in various Chicago Mercantile Exchange U.S. Treasury futures products. They placed bids or offers with the intent to cancel those orders before execution while trading for Citigroup.
In addition to executing the spoofing strategy individually, Gola and Brims coordinated with one or more Citigroup traders on the U.S. Treasury desk to implement the strategy, the regulator added.
The CFTC has previously ordered Citigroup Global Markets to pay $25 million in civil monetary penalties over claims that it engaged in spoofing.