CFTC Fines Chicago Trader $100,000 for Spoofing in Natural Gas and RBOB Futures

The Commodity Futures Trading Commission issued an order simultaneously filing and settling charges against Eric Schwartz of Chicago, Illinois, for engaging in multiple instances of spoofing.

Specifically, the order finds that Schwartz spoofed—defined in the Commodity Exchange Act (CEA) as bidding or offering with the intent to cancel the bid or offer before execution—in calendar spreads involving Natural Gas (NG) and Reformulated Blendstock for Oxygenate Blending Gasoline (RBOB) futures contracts on the Chicago Mercantile Exchange on multiple occasions from approximately April 2020 to July 2020.

The order requires Schwartz to pay a $100,000 civil monetary penalty and incur a four-month suspension from trading on or subject to the rules of any CFTC-designated exchange and all other CFTC-registered entities and in all commodity interests. Schwartz is also ordered to cease and desist from violating the CEA's spoofing prohibition.

Related Disciplinary Action

The CFTC's investigation was conducted in conjunction with a parallel inquiry by the CME Group. The CME Group previously announced disciplinary actions against Schwartz. The CFTC considered the fine and suspension imposed by the CME Group when imposing its civil monetary penalties.