A Canadian bank agreed to pay $800,000 to settle CFTC charges that it engaged in "spoofing" in gold and silver futures contracts traded on the Chicago Mercantile Exchange. According to the CFTC, the spoof orders were placed to create the impression of greater buying or selling interest than would have existed absent such orders.
In accepting the settlement offer, the CFTC recognized the self-reporting and cooperation of the Bank of Nova Scotia ("BNS"). The CFTC stated that self-reporting, cooperation and remediation by BNS were recognized in the form of a reduced civil monetary penalty.
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