The Commodity Futures Trading Commission reportedly is to announce it has fined UBS Group, HSBC Holdings Plc and Deutsche Bank AG millions of dollars for "spoofing" and manipulation in the U.S. futures market, according to a published report.
According to a report from Reuters Friday afternoon citing three people with direct knowledge of the matter, fines for UBS (UBS) - Get UBS Group AG Report and Deutsche Bank (DB) - Get Deutsche Bank AG Report will be more than $10 million, and the fine for HSBC (HSBC) - Get HSBC Holdings PLC Sponsored ADR Report will be less -- but Reuters' sources did not provide exact amounts.
The report said the enforcement action by the CFTC is the result of a multi-agency investigation also involving the Dept. of Justice and the FBI.
Reuters said spokesmen for all three banks declined to comment. Representatives of the banks could not be reached late Friday for a response.
"Spoofing" is a type of illegal market manipulation that is similar to bluffing. A year ago, Citigroup (C) - Get Citigroup Inc. Reportwas fined $25 million for spoofing the U.S. Treasury futures market. The fine was the biggest ever levied in a spoofing case, according to Bloomberg. The CFTC said at the time that Citigroup traders spoofed more than 2,500 times between July 2011 and December 2012.
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