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CFTC Cracks Down on Slovakian Duo and BAZUR Spol. S.R.O. for Alleged Spoofing Activity in Crude Oil Markets

Release Number: 8261-20 Date: September 29, 2020

The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Roman Banoczay Jr., Roman Banoczay Sr., and BAZUR Spol. S.R.O., based in Bratislava, Slovakia, for engaging in manipulative and deceptive practices through spoofing in the crude oil futures markets.

Allegations of Spoofing Activity

The CFTC alleges that Banoczay Jr. placed thousands of orders to buy or sell crude oil futures contracts on CME Group Inc.’s exchanges with the intent to cancel them before executions. This activity, according to the CFTC, sent false signals of increased buying or selling interest in an attempt to trick other market participants into filling orders benefiting the defendants.

Complicity and Penalties Sought

Roman Banoczay Sr. and BAZUR Spol. S.R.O. are accused of being complicit, as Banoczay Jr. acted as their trading agent during this period. The CFTC is seeking penalties, including:

  • Return of ill-gotten gains
  • Trading bans
  • A permanent injunction against any future violations of federal commodities laws

Previous Sanction

In a related matter, Banoczay Jr. was previously sanctioned by the CME Group on March 23, 2020, for the same alleged conduct.

Assistance and Enforcement Team

The CFTC expressed its appreciation to the National Bank of Slovakia and CME Group for their assistance in this matter. The Division of Enforcement is pursuing this case with team members:

  • Ilana Waxman
  • Brian Hunt
  • Daniel Jordan
  • Patrick Marquardt
  • Jordon Grimm
  • Rick Glaser

Director’s Statement

Division of Enforcement Director James McDonald stated, “These charges underscore the CFTC’s commitment to prosecuting fraudulent activities, no matter where the wrongdoers are located.”

Note on Enforcement Actions

The CFTC stresses that bringing and settling enforcement actions is not a finding or admission of guilt, but instead represents an opportunity to resolve the matter with the CFTC prior to potentially lengthy litigation.

Additional Information