Slovakian National Faces CFTC Charges Over Spoofing and Manipulative Scheme in Chicago Crude Oil Futures Market

December 8, 2021

The Commodity Futures Trading Commission (CFTC) has announced that Roman Banoczay Jr., a trader from Bratislava, Slovakia, along with his father, Roman Banoczay Sr., and their company, BAZUR Spol. S. R. O (BAZUR), have agreed to settle charges of engaging in spoofing and a manipulative and deceptive scheme.

Charges and Penalties

The CFTC alleges that the trio violated the Commodity Exchange Act (CEA) and CFTC regulations by participating in a manipulative and deceptive scheme in the Chicago Mercantile Exchange (CME) crude oil futures market. The U.S. District Court for the Northern District of Illinois has imposed a $750,000 civil penalty on Banoczay Jr., an absolute prohibition on trading and registering with the CFTC in any capacity for two years, and a cease-and-desist order against all three parties.

The Scheme

According to the CFTC, during a four-week period in early 2018, Banoczay Jr. made false signals by intentionally placing and cancelling thousands of orders, known as spoofing. The aim was to influence other market participants into believing there was heightened buying or selling interest, resulting in trades that favored Banoczay Jr.

Responsibility

The consent order holds Banoczay Jr. solely responsible for the actions. However, it also holds Banoczay Sr. and BAZUR vicariously liable, as Banoczay Jr. acted as an agent and committed these violations within the scope of his agency.

Previous Disciplinary Action

Banoczay Jr. had previously faced disciplinary action from the CME Group, Inc., for the same conduct in March 2020.

Acknowledgement

The CFTC acknowledged the assistance of the National Bank of Slovakia and the CME Group Inc. in this matter. The case was investigated by Brian Hunt, Daniel Jordan, Erica Bodin, Patrick Marquardt, Jordon Grimm, Rick Glaser, and former staff member Ilana Waxman of the CFTC’s Division of Enforcement.

Note

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