The Commodity Futures Trading Commission (CFTC) ordered New York trader Sidney Lebental to pay $200,000 for defrauding US Treasury futures, ending a case tied to nearly 50 fraudulent trades placed on the Chicago Board of Trade in 2019.
Lebental did not admit or deny the findings under the settlement order, which also bars him from trading in commodities for one month and other bars for violating the Commodity Exchange Act’s spoofing laws.
Within the Treasury Futures Scheme
CFTC price he said Lebental spoofed about 50 times between January and September 2019. He mainly wanted Ultra US Treasury Bond Yieldbonds tied to 25- to 30-year-old government debt.
They placed specific orders for Treasuries or futures contracts on one side. At the same time, he entered large spoof programs on the other hand in a joint future contract.
After his actual orders were filled, Lebental cleared the charges. The agency said it knows the equipment was connected enough to put the trees in place.
Punished by History
Through a $200,000 federal penalty, the law imposes a 30-day trading ban on property interests and restrictions on public claims. Registered organizations must prevent him from trading on that screen.
Lebental became head of the international bank’s pricing desk during his tenure. His previous work was also Bank of America Securities.
He faced similar scrutiny from the Financial Industry Regulatory Authority (FINRA). The agency has named hundreds of suspects before the Treasury is set in 2024.
Bank of America paid a $24 million fine to FINRA in late 2023 for Treasury spoofing on its desk.
The CFTC’s plans are already on regulators’ radar. Treasury market participants will monitor other pressures associated with the same desk and similar instruments.
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