On July 22, 2013, the Commodity Futures Trading Commission (the “Commission” or “CFTC”) issued an order assessing $2.8 million in civil penalty and disgorgement fees against Panther Energy Trading LLC and its principal Michael J. Coscia (the “Respondents”) for engaging in the disruptive trading practice of spoofing. This is the first time the Commission has assessed a civil penalty for a violation of the Dodd-Frank Act's prohibition against spoofing, as set forth in new section 4c(a)(5) of the Commodity Exchange Act (“CEA”). This case implements the Commission's interpretive guidance that spoofing violations do not require a manipulative intent, although they do require at least “some degree of intent” to “cancel a bid or offer before execution.”

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