The Futures Futures (CFTC) Committee announced today that it has issued the deposit of commands and arranged the charges against Brett Falloon and Flatiron Futures Traders LLC for falsification in the future e-mini S&P 500 and E-MINI Nasdaq 100 Mercanile Exchange.
Falloon and Flatiron have to pay, together and separately, a $ 200,000 political monetary penalty. Falloon is also prohibited by the interests of the goods for 12 months. Both parties were ordered to stop and abandon the prohibition on the ban on the exchange of goods.
The mandate finds that from May to December 2022, Fallloon was involved in forgery while negotiating on behalf of Flatiron, placing bids and bids with the intention of canceling them before execution.
Fallloon set genuine commands that intended to execute on one side of the order book while entered the orders he planned to cancel on the opposite side. Once his genuine commands are completed, he canceled the spoof orders. His genuine commands were often aggressive, which means they crossed the spread of the offer and were immediately full.
Falloon ordering were usually a large proportion of orders based on top prices. The total number of contracts in its variants, which exceeded the contracts on the legal orders of 5 to 1.
The mandate also finds that Falloon has set orders with the intention of misleading other market participants. His behavior has caused other traders either to cross the spread of the offer to fill his genuine orders, or to place rest orders at the best offer, allowing Falloon to fill his genuine orders faster, in greater quantities or at more favorable prices.