Corporate Counsel Daily, CFTC fines Shinhan Securities $212,500 for wash sales on NYMEX, (Sep 18, 2025)
The CFTC sanctioned Shinhan Securities for executing wash sales and non-competitive trades, imposing a $212,500 penalty and a cease-and-desist order.
The CFTC announced that Shinhan Securities Co. Ltd., a financial services company, has agreed to settle charges for engaging in prohibited wash sales and non-competitive transactions on the New York Mercantile Exchange (NYMEX). As part of the settlement, Shinhan will pay a $212,500 civil monetary penalty and is ordered to cease and desist from further violations of the Commodity Exchange Act and CFTC regulations (In the Matter of Shinhan Securities Co. Ltd., CFTC Docket No. 25-08 (Sept. 17, 2025)).
According to the order, the misconduct involved a trader who entered nearly simultaneous bids and offers for identical quantities of the same futures contracts in accounts with the same beneficial ownership. These offsetting trades were designed to increase the chances that both sides of the orders would be filled at matching or similar prices, effectively canceling out any market risk.
The CFTC emphasized that the trades undermined market integrity by eliminating real price discovery and competition. By avoiding risk through non-competitive transactions, Shinhan undercut the purpose of open markets. The fine and cease-and-desist order reinforce the CFTC’s commitment to fair and competitive trading.
This is CFTC Docket No. 25-08.
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