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CFTC orders Citigroup Global Markets to pay $25M penalty over spoofing claims

The U.S. Commodity Futures Trading Commission ordered Citigroup Global Markets Inc. to pay $25 million as civil monetary penalty over claims that it engaged in a trading tactic known as spoofing.

The regulator alleged that the company, between July 16, 2011, to Dec. 31, 2012, bid or offered with the intent of canceling the bids or offers in the U.S. Treasury futures market. CFTC also charged the company for failing to supervise its employees and agents in relation to the spoofing.

The regulator said the company spoofed more than 2,500 times through five traders. The traders would place bids of 1,000 lots or more, and would then cancel them before the execution, according to the regulator.

Aside from the monetary penalty, the regulator also required Citigroup Global Markets to cease and desist from violating the Commodity Exchange Act's prohibition against spoofing and the CFTC policy on supervising employees.

Citigroup Global Markets is a subsidiary of Citigroup Inc.