Ali Abbassi Sanctioned for Misleading Trades in Natural Gas Markets

The CME Group has announced disciplinary action against trader Ali Abbassi for disruptive trading practices in Henry Hub Natural Gas Financial Calendar Spread Option markets. The violations occurred on April 25 and May 3, 2023, during which Abbassi engaged in trading behavior intended to mislead other market participants and gain a more favorable position.

According to a notice from the NYMEX Business Conduct Committee (BCC), Abbassi entered non-bona fide orders on CME's Globex electronic trading platform. These orders were placed at improved prices to influence the terms of a block trade he was negotiating through a broker. Once the counterparty improved their offer in response to the artificial orders, Abbassi executed the block trade at a more favorable price and promptly canceled his Globex orders.

The BCC determined that Abbassi's actions caused the counterparty to incur losses of $40,000. His behavior was found to violate NYMEX Rules 575.A. and 575.B., which prohibit disruptive practices and other forms of market manipulation.

As part of a settlement agreement, Abbassi neither admitted nor denied the rule violations but agreed to pay a $60,000 fine, make $40,000 in restitution, and serve a 20-business-day suspension. The suspension began on January 24, 2025, and extends through February 21, 2025, barring Abbassi from direct or indirect access to any CME Group trading floor or platform.

The case highlights the CME Group's enforcement of strict regulations designed to protect market integrity. "Disruptive trading undermines the fairness of our markets," the group stated in its disciplinary notice, emphasizing that it will hold violators accountable.