In its continuing battle against spoofing, the US Commodity Futures Trading Commission (CFTC) has issued two orders filing and settling charges against Thomas Donino and his employer FNY Partners Fund, for spoofing Comex gold futures and NYMEX oil futures. In a separate action, the Commission charged Slovakians Roman Banoczay Jr., Roman Banoczay Sr., and their company, BAZUR Spol. S.R.O, with spoofing oil futures.
The order requires Donino to pay a $135,000 penalty and suspends him for three months from trading on any CFTC-designated exchange, while FNY Partners Fund has been fined $450,000 as it was found liable for Donino’s activities as an employee.
According to the orders, between January 2013 and January 2016, Donino placed multiple orders with the intent to cancel the orders before execution. His trading pattern involved placing a small genuine order, typically for 10 or fewer contracts on one side of the market that he wanted to get filled, and then placing a larger “spoof” order that he intended to cancel, typically for five times as many contracts as the genuine order. Generally, Donino quickly cancelled the spoof order after placing it, and often after his genuine order was filled, CFTC says.
In its continuing civil litigation against the Slovakians, the CFTC says it seeks, among other relief, civil monetary penalties, disgorgement, trading bans, and a permanent injunction against future violations of the federal commodities laws, as charged. Banoczay Jr. was previously the subject of a CME disciplinary notice for spoofing.