Nomura Trader Approved Reconsideration in CFTC Case

John Patrick Gorman III, a U.S. dollar swaps trader and managing director of Nomura, has overturned some of the judgements made earlier in the case where CFTC charged Gorman for engaging in a scheme to deceive and to manipulate the price of U.S. dollar interest rate swap spreads published on a screen displaying prices from a swap execution facility broker firm (SEF Broker Firm) in the United States – JBIC. 

According to the CFTC complaint, Gorman aimed to gain profit for Nomura through the scheme.

As described in an order signed by Victor Marrero of the New York Southern District Court on August 11, 2022, the trader applied for reconsideration of the ruling that he was refused in dismissing the CFTC case.

The court, in light of recent Second Circuit opinions, approved the reconsideration, permitting Gorman to file a full motion to dismiss and will rule on the case at the conclusion of the parties' briefing on Gorman's proposed motion.

However, Gorman regards the CFTC's Complaint as part of its efforts to secure judicial approval for a vast expansion of the law of market manipulation.

Illegal acts of market manipulation have been severely cracked down by major financial watchdogs. Most recently, CFTC fined Glencore $1.186 billion for manipulation and corruption​.