Optiver Market-Manipulation Case Referred To Mediator

Jul 1 2011 | 1:07am ET

A long-running hedge fund market-manipulation case is heading to mediation.

The Commodity Futures Trading Commission’s allegations against Optiver Holding’s U.S. unit were referred to U.S. Magistrate Judge Theodore Katz for settlement two weeks ago. It is unclear how involved in crafting a deal between the two sides Katz will be.

Three years ago, the CFTC sued Amsterdam-based Optiver, two of its units and three employees, accusing the lot of market manipulation and attempt market manipulation.

According to the CFTC, the defendants attempted to manipulate the crude oil, gasoline and heating oil markets on 19 occasions in March 2007, succeeding at least five times and turning $1 million in allegedly ill-gotten profits. Optiver engaged in “banging the close,” the CFTC said in the enforcement action, filed in Manhattan federal court, meaning that is built up a large position just before the market closes and offset it at the close, which is illegal.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...