Accused U.K. flash-crash trader loses extradition fight, will appear in Chicago for trial
Neurensic
Becky Yerak Reporter, Chicago Tribune   Accused "flash crash" trader Navinder Singh Sarao lost his latest round to fight extradition and will be sent from the U.K. to Chicago to face federal charges that he helped trigger a 2010 tumble in stock markets. A U.K. judge on Friday refused Sarao's application to appeal his extradition, a court spokesman said. A grand jury in Chicago indicted Sarao in 2015, alleging manipulation on the Chicago Mercantile Exchange. The charges against Sarao include wire fraud,
Read More
Trading Firms Beware: Those That House Spoofers Can Be Held Strictly Liable
Jay Biondo
In US tort law there is a rigid legal doctrine known as 'strict liability' which is frequently used by consumers to hold manufacturers of defective products legally responsible for any harm caused by their products.  Consumers who bought and used the product and were injured are able to file suit against the manufacturer and seek damages without having to prove that the manufacturer had reckless, negligent, or bad faith intent in producing the product (hence, the rigidity of the doctrine).
Read More
CFTC, Oystacher Said to Be in Spoofing Case Settlement Talks
Neurensic
As reported on Bloomberg by Matthew Leising and Janan Hanna The U.S. Commodity Futures Trading Commission is trying to settle its market-manipulation case against Igor Oystacher and his Chicago firm 3Red Trading LLC. Lawyers on Tuesday persuaded U.S. District Judge Amy St. Eve to allow two more weeks for those discussions, according to the people familiar with the matter who asked not to be named because they weren’t authorized to speak publicly. No agreement has been reached and the talks could still break
Read More
Jay Biondo Director of Surveillance Products Design
Compliance must get ready for tougher Indian high-frequency trading rules
Neurensic
Neurensic's Jay Biondo weighs in on HFT and speed bumps at exchanges.   "Compliance and legal staff will have to stay abreast of emerging regulations and actively educate their employers about the shifting landscape to ensure that sufficient resources are dedicated to building a robust supervisory program. However, the introduction of 'speed bumps' may likely have little to no impact on the supervisory responsibilities of compliance and legal staff," said Jay Biondo, director of surveillance products design at Neurensic in
Read More
Thompson Coburn: Was that trader really ‘spoofing’? Focus on the words, not the regulator claims
Neurensic
Kent Knickmeyer, Richard Reibman published and article worth reading taking a look at spoofing. They specifically try to answer the following question: Can trading pursuant to an algorithmic program properly be found to constitute “spoofing” in violation of CEA Section 4c(a)(5)(C): What constitutes “the intent to cancel the bid or offer before execution”? They focus specifically on understanding "The intent to cancel." Read the full article on JDSupra Business Advisor.   
Read More
Chicago based FCM and its officers fined: Supervision & Risk Issues
Jerry Leterman
CFTC Press Release PR7449-16 CFTC Orders Chicago-based Advantage Futures LLC, its CEO Joseph Guinan, and Former Chief Risk Officer William Steele Jointly to Pay a $1.5 Million Civil Monetary Penalty for Supervision, Risk Management Failures, and Making Inaccurate Statements in Required Filings with the CFTC Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and simultaneously settling charges against Advantage Futures LLC (Advantage), a Chicago-based Futures Commission Merchant (FCM), for failing to diligently supervise
Read More
SEC Charges Hedge Fund Manager Leon Cooperman With Insider Trading
Jerry Leterman
2016-189 Washington D.C., Sept. 21, 2016 —  The Securities and Exchange Commission today charged hedge fund manager Leon G. Cooperman and his firm Omega Advisors with insider trading based on material nonpublic information he learned in confidence from a corporate executive. The SEC alleges that Cooperman generated substantial illicit profits by purchasing securities in Atlas Pipeline Partners (APL) in advance of the sale of its natural gas processing facility in Elk City, Oklahoma.  Cooperman allegedly used his status as one
Read More
ICE Rule 8A.08 Crossed Trades
Neurensic
ICE states that Cross Trades Rule 8A.08 places restrictions and requirements on situations in which a trader may enter orders for different beneficial owners that will trade against each other (“crossing orders”). In most situations, the Rules require the inclusion of a time delay between the entry of the buy and sell orders. Orders which are immediately executable against each other do not require this time delay, provided they are entered immediately. If the orders are not immediately entered, then
Read More
CME Rule 533. Simultaneous Buy and Sell Orders for Different Beneficial Owners (crossing)
Neurensic
A member who is in possession of both buy and sell orders for different beneficial owners for the same product and expiration month, and, for a put or call option, the same strike price, may execute such orders for and directly between such beneficial owners provided that in pit trading, a member executing such orders shall first bid and offer by open outcry three times at the same price, stating the number of contracts, and, thereafter, if neither the bid
Read More
Neurensic Partners with Vine Street Trading to Provide Compliance and Surveillance Capabilities
Neurensic
CHICAGO, September 16, 2016 -- Neurensic, a fintech artificial intelligence (AI) startup, today announced that its CORE™ product has been selected by Vine Street Trading for its market surveillance and compliance capabilities. Vine Street Trading is a Chicago-based, principal trading group that has focused primarily on electronic futures markets throughout its 10 year existence. “We are proud to partner with an established market maker with complex futures trading strategies in Vine Street Trading,” said David Widerhorn, founder and CEO of
Read More