Amaranth fined $7.5m for market manipulation and misrepresentation
Connecticut-based hedge fund Amaranth will pay a $7.5 million civil fine to settle charges of attempted manipulation of the price of natural gas futures and subsequent misrepresentation to the New York Mercantile Exchange (Nymex).
The fine follows a complaint filed by the US Commodity Futures Trading Commission (CFTC) in July 2007, reporting that on February 24 and April 26, 2006 Amaranth acquired more than 3,000 Nymex natural gas futures contracts in advance of the closing range, most of which were subsequently sold during the closing range.
The US District Court for the Southern District of New York ordered the fine yesterday and also enjoined Amaranth Advisors LLC and ULC from violating the anti-manipulation and anti-misrepresentation provisions of the Commodity Exchange Act. The claims in the CFTC complaint against Brian Hunter, the head natural gas trader for the Amaranth entities, are not affected by the settlement.
See also: CFTC files civil action against Amaranth
CFTC: record levels of crime in energy markets
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Esma supervision proposals ensnare Bloomberg and Tradeweb
Derivatives and bonds venues would become subject to centralised supervision
Industry frowns on FCA’s single-sided trade reporting efforts
Buy side warns UK attempt to ease Mifir burden may miss target; dealers aren’t happy either
One vision, two paths: UK reporting revamp diverges from EU
FCA and Esma could learn from each other on how to cut industry compliance costs
Market doesn’t share FSB concerns over basis trade
Industry warns tougher haircut regulation could restrict market capacity as debt issuance rises
FCMs warn of regulatory gaps in crypto clearing
CFTC request for comment uncovers concerns over customer protection and unchecked advertising
UK clearing houses face tougher capital regime than EU peers
Ice resists BoE plan to move second skin in the game higher up capital stack, but members approve
ECB seeks capital clarity on Spire repacks
Dealers split between counterparty credit risk and market risk frameworks for repack RWAs
FSB chief defends global non-bank regulation drive
Schindler slams ‘misconception’ that regulators intend to impose standardised bank-like rules
