A Closer Look At CFTC's Loss In Market Manipulation Case

By Michael Brooks and Robert Pease (January 16, 2019, 1:38 PM EST) -- On Nov. 30, 2018, a federal court rejected the U.S. Commodity Futures Trading Commission's allegations of market manipulation in CFTC v. Wilson and found in favor of the defendants, Donald R. Wilson and his company, DRW Investments LLC. According to Judge Richard Sullivan (appointed to the Second Circuit Court of Appeals during the pendency of the matter and writing the decision while sitting by designation in the United States District Court for the Southern District of New York), "the CFTC … failed to prove that Defendants intended to cause artificial prices" and "its case founders on its abject failure to produce evidence — or even a coherent theory — supporting the existence of an artificial price." In a three-sentence statement on the decision, the chairman of the CFTC was quick to note that the case applied the CFTC's authority as it stood prior to passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act....

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