CFTC Sues Dutch Hedge Fund For Energy Market Manipulation

Jul 25 2008 | 12:04pm ET

The U.S. Commodity Futures Trading Commission has sued a Dutch hedge fund over alleged energy market manipulation.

The regulator has accused Amsterdam-based Optiver Holding, two of its units and three employees with both market manipulation and attempted market manipulation, the first civil case to result from its investigation into energy prices. The CFTC says that dozens of probes are ongoing.

According to the CFTC, the defendants attempted to manipulate the crude oil, gasoline and heating oil markets on 19 occasions last March, 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, similar to the charges it has levied against former Amaranth Advisors traders Brian Hunter and Matthew Donohoe.

The CFTC quotes Christopher Dowson, head trader for Optiver US, saying he and another trader decided to “just whack the oil.” Bastiaan van Kempen, CEO of Optiver, is quoted as saying, “You should milk it for right now as much as you can, because you never know how long this thing is going to last.”

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel Supports Manhattan Real Estate With Record Deal

Sep 16 2015 | 3:04pm ET

Never count hedge funds out of a big property deal. The Manhattan real estate market...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note