Commodity Futures Trading Commission (CFTC) has ordered former BP trader, Paul Kelly to pay $400,000 after attempting to manipulate unleaded gasoline futures on New York Mercantile Exchange (Nymex).
CFTC found that Kelly tried to manipulate the price spread of the Ntmex contracts between November and December, 2002.
The order finds that Kelly was primarily responsible for obtaining physical, finished gasoline as well as components for gasoline for BPPNAs northeast commercial needs. According to the order, unleaded gasoline was in short supply in October 2002 and early November 2002, and Kelly was aware of the shortage, CFTC said in a statement.
The order finds that despite the fact that BPPNA held a long position of 1,352 November 2002 unleaded gasoline contracts 52 more than its stated commercial need of 1,300 contracts Kelly bought an additional 720 November 2002 unleaded gasoline contracts through the course of the day on October 31, 2002. The Commission found that Kelly engaged in this conduct with the intent to affect the price spread between the November and December 2002 NYMEX unleaded gasoline futures contracts.
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