DRW Defends CFTC Claim It ‘Banged the Close, Day After Day’
- Regulator alleges firm used false bidding to boost profit
- DRW says its placed bids for undervalued swaps futures
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DRW Holdings Inc. rigged an interest-rate benchmark to juice profits on a trade, U.S commodities regulators told a federal judge in a high-stakes case marking their first courtroom attempt to prove manipulation in a decade.
Trading firm DRW and founder Donald R. Wilson used artificial bidding near the end of the trading session to boost the price of futures on interest-rate swaps in a technique known as "banging the close," a lawyer for the Commodity Futures Trading Commission said.