High-speed trading firm Panther Energy Trading has been fined $3.1 million for artificially inflating the price of their futures contracts in several hot markets.
CNN reports that Panther and its principal, Michael Coscia, spent two months “spoofing” the market by creating a false sense of demand among market participants. Panther manipulated several commodities markets including oil and natural gas.
Coscia allegedly used an algorithm that places bids and cancels them soon after they’re placed. Panther and Coscia executed this scheme with futures contracts traded on CME Group (CME) exchanges and London’s InterContinental Exchange (ICE).
The U.S. Commodity Futures Trading Commission enforcement director said spoofing “will not be tolerated,” and the CTFC has issued Panther a penalty of $1.4 million.
Additionally, CME Group and the U.K. Financial Conduct Authority are fining Panther $800,000 and $900,000, respectively.