Correction: Traders Indicted story
In a story Jan. 29 about, a group of traders charged with manipulating U.S. futures markets, The Associated Press reported erroneously that HSBC was among the traders' employers. None of the traders was working at HSBC.
A corrected version of the story is below:
8 charged with manipulating futures markets by 'spoofing'
Federal prosecutors are charging a group of traders with manipulating U.S. futures markets through a practice known as spoofing
WASHINGTON (AP) — Federal prosecutors are charging a group of traders with manipulating U.S. futures markets through a practice known as spoofing.
Authorities on Monday announced charges against eight people, some of whom had been employed by Deutsche Bank and UBS.
The investigation by the Justice Department, FBI and Commodities Futures Trading Commission targeted spoofing. That's when a trader places buy or sell orders with the intent to cancel them before the transactions are completed. That creates the illusion of demand, inflating prices to benefit the trader's market positions.
The Justice Department's John Cronan said such manipulation erodes confidence in U.S. markets and "creates an uneven playing field" for legitimate traders and investors.
The charges are the latest in a series of civil and criminal actions brought against banks.