U.S. Looking at Chicago Trader as Probe Over Fake Orders Widens
- Grand jury said to hear testimony related to 3Red's Oystacher
- Spoof cases come after prosecutors founded Chicago fraud unit
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Federal prosecutors are investigating whether a Chicago trader placed fake orders in an attempt to manipulate prices, said two people familiar with the matter, as the Justice Department broadens its effort to police the $30 trillion U.S. futures market.
A grand jury is hearing testimony in Chicago about possible commodities-market manipulation and in particular about the actions of Igor Oystacher, one of the people said. This comes on top of a regulatory probe and concerns raised in the past year by two exchanges about Oystacher, the co-founder of proprietary trading firm 3Red.