The US Commodity Futures Trading Commission (CFTC) is investigating a series of suspicious oil contract trades made before Donald Trump's policy changes on Iran. This is reported by Reuters, writes UNN.
Details
According to the source, the investigation concerns transactions on the CME Group and Intercontinental Exchange. Investigators are analyzing at least two trading episodes – March 23 and April 7.
These deals could have brought participants millions in profits. In particular, investors placed bets on oil prices totaling about $950 million shortly before the announcement of a truce between the US and Iran.
Regulator's reaction
CFTC Chairman Michael Selig stated that the agency would respond harshly to possible violations.
I want to be absolutely clear: to anyone engaging in fraud, manipulation, or insider trading – we will find you, and you will face the full force of the law
At the same time, the CFTC has not officially confirmed a specific investigation.
Risks of insider trading
The situation has raised concerns among lawmakers and experts, who believe that decisions in the sphere of war and diplomacy can create opportunities for abuse in financial markets.
Senator Elizabeth Warren stated that the investigation should be just the beginning and called for increased control over possible cases of insider trading.
The White House has already warned its employees about the inadmissibility of using their official position for trading in the markets.
The regulator also requests detailed data from exchanges about the participants in the transactions to establish who was behind the suspicious operations.
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