Two futures traders in the United Arab Emirates banned from U.S. commodity markets last month for the disruptive practice known as "spoofing" faced additional penalties from CME Group Inc.
The Chicago-based futures exchange operator fined traders Nasim Salim $100,000 and Heet Khara $90,000, and permanently barred both from its markets for placing orders in gold and silver futures contracts last year that they intended to cancel before execution.
They could not immediately be reached for comment.
Placing bids and offers without intending to execute them is prohibited because it can create an illusion of demand, driving price moves that otherwise might not occur.
The illegal practice has been fingered as a key contributor to the 2010 Wall Street "flash crash." The U.S. government in 2015 won its first criminal case against a trader accused of spoofing.
Last month, a federal court in New York fined Salim and Khara each more than $1.3 million to settle civil charges of spoofing, and also permanently banned them from trading.
The traders did not admit or deny the allegations, according to court filings.
Last month, a British judge approved a U.S. request for the extradition of a London-based trader, Navinder Sarao, accused of contributing to the 2010 Wall Street "flash crash" with spoofing tactics similar to those Salim and Khara allegedly used.
