Three former Citigroup Inc. traders agreed to nonprosecution agreements with the Commodity Futures Trading Commission for their cooperation in a larger investigation of "spoofing" in U.S. Treasury markets, the CFTC said Thursday.
Jeremy Lao, Daniel Liao and Shlomo Salant admitted to engaging in market manipulation in 2011 and 2012, but because of their "substantial cooperation" with the CFTC and lack of a history of misconduct, the agency decided to shield them from prosecution.
The CFTC fined Citigroup $25 million in January for failing to properly supervise its traders and prevent spoofing. Citigroup neither admitted to nor denied the allegations.
Spoofing involves a trader entering large orders with the intention of tricking others into thinking there had been a fundamental change in the supply and demand of an asset. Congress outlawed the practice in 2010.
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(END) Dow Jones Newswires
June 29, 2017 14:02 ET (18:02 GMT)