Oil Trader Gets Pumped Out of Trading by CFTC for Attempted Manipulation
Tuesday,26/11/2013|11:04GMTby
Adil Siddiqui
The US financial watchdog, the CFTC, has issued a $400,000 fine to Daniel Shak and SHK Management for attempted manipulation in trading energy futures, the accused was banned from trading in the oil markets.
The Commodity Futures Trading Commission (CFTC) issued an Order filing and settling charges to a Las Vegas-based trader following charges of attempted manipulation in the oil markets. Daniel Shak and SHK Management, LLC (SHK) were handed a $400,000 civil monetary penalty. The CFTC also "permanently bans Shak and SHK from trading in any Crude Oil markets, and imposes a two-year ban from trading outrights for any product or financial instrument during the closing period."
Details in the Order state that Shak attempted to manipulate the price of the Light Sweet Crude Oil (WTI) futures contracts on the New York Mercantile Exchange (NYMEX), and violated intraday spot month speculative position limits applicable to WTI futures contracts on two days in 2008.
Shak had established substantial net short positions in WTI futures contracts through Trading at Settlement (TAS). TAS is an exchange rule which permits the parties to a futures trade during a trading day to agree that the price of the trade will be of that day’s settlement price − or the settlement price plus or minus a specified differential.
Gretchen L. Lowe, Acting Director, CFTC Division of Enforcement, spoke about the verdict in a statement, saying: “Today’s action by the CFTC shows that the misuse of TAS trades and offsetting of TAS positions during the close of trading to affect settlement prices unlawfully will not be tolerated.”
Traders use a range of ill-practices in an attempt to dictate the market. A similar approach used by traders who use high-frequency trading for their advantage, whereby they place several market orders over and above the market price.When the market responds to the large number of resting orders, high-frequency firms cancel the orders and take a position on the manipulated price.
Traditional currency brokers have seen a surge in commodity trading this year, the three most popular contracts being oil, silver and gold.
The Commodity Futures Trading Commission (CFTC) issued an Order filing and settling charges to a Las Vegas-based trader following charges of attempted manipulation in the oil markets. Daniel Shak and SHK Management, LLC (SHK) were handed a $400,000 civil monetary penalty. The CFTC also "permanently bans Shak and SHK from trading in any Crude Oil markets, and imposes a two-year ban from trading outrights for any product or financial instrument during the closing period."
Details in the Order state that Shak attempted to manipulate the price of the Light Sweet Crude Oil (WTI) futures contracts on the New York Mercantile Exchange (NYMEX), and violated intraday spot month speculative position limits applicable to WTI futures contracts on two days in 2008.
Shak had established substantial net short positions in WTI futures contracts through Trading at Settlement (TAS). TAS is an exchange rule which permits the parties to a futures trade during a trading day to agree that the price of the trade will be of that day’s settlement price − or the settlement price plus or minus a specified differential.
Gretchen L. Lowe, Acting Director, CFTC Division of Enforcement, spoke about the verdict in a statement, saying: “Today’s action by the CFTC shows that the misuse of TAS trades and offsetting of TAS positions during the close of trading to affect settlement prices unlawfully will not be tolerated.”
Traders use a range of ill-practices in an attempt to dictate the market. A similar approach used by traders who use high-frequency trading for their advantage, whereby they place several market orders over and above the market price.When the market responds to the large number of resting orders, high-frequency firms cancel the orders and take a position on the manipulated price.
Traditional currency brokers have seen a surge in commodity trading this year, the three most popular contracts being oil, silver and gold.
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Finance Magnates Awards 2026 – Nominations Now Open
Finance Magnates Awards 2026 – Nominations Now Open
The Finance Magnates Awards 2026 nominations are now open. 🏆
From fintech innovators to leading brokers, this is where the finance industry celebrates its biggest achievements.
Winners will be announced at the Cyprus Gala Dinner on November 6, 2026.
Nominate your brand now.
https://awards.financemagnates.com/?utm_source=linkedin&utm_medium=video&utm_campaign=nominations-open
#FMAwards #FinanceMagnates #FintechAwards #Fintech #FinanceIndustry
The Finance Magnates Awards 2026 nominations are now open. 🏆
From fintech innovators to leading brokers, this is where the finance industry celebrates its biggest achievements.
Winners will be announced at the Cyprus Gala Dinner on November 6, 2026.
Nominate your brand now.
https://awards.financemagnates.com/?utm_source=linkedin&utm_medium=video&utm_campaign=nominations-open
#FMAwards #FinanceMagnates #FintechAwards #Fintech #FinanceIndustry
Finance Magnates Awards 2026 | Nominations Now Open 🏆#Fintech #FMAwards #TradingIndustry
Finance Magnates Awards 2026 | Nominations Now Open 🏆#Fintech #FMAwards #TradingIndustry
Lights on. Cameras ready. 🎬
Finance Magnates Awards 2026 nominations are now open. 🏆
#FMAwards #FinanceMagnates #FintechAwards #Fintech
Lights on. Cameras ready. 🎬
Finance Magnates Awards 2026 nominations are now open. 🏆
#FMAwards #FinanceMagnates #FintechAwards #Fintech
Exness sees trust as the key theme for growth in MENA Trading Growth for 2026
Exness sees trust as the key theme for growth in MENA Trading Growth for 2026
Mohammad Amer, Regional Commercial Director at Exness, sits down to discuss the booming MENA financial trading market. Find out why Dubai is key to the company's growth strategy, how a mobile-first generation is changing expectations, and why trust will be the defining theme for traders in 2026.
In this interview, you'll learn:
* Why Dubai and the MENA region are critical growth markets for fintech and online trading.
* How Exness is addressing the demands of mobile-first, younger traders through engineering, platform stability, and transparent conditions.
* The essential role local talent plays in providing a culturally relevant and compliant user experience.
* Mohammad Amer's outlook on the future of the online trading industry and why stronger controls and systems are necessary.
* Why "trust" isn't just a brand value, but has commercial value—and why he predicts 2026 will be the "Year of Trust."
Key Takeaways:
➡️ The MENA region is rapidly shaping global financial markets.
➡️ New traders expect stability, precise execution, and transparency.
➡️ Local expertise is key to regulatory compliance and user experience.
➡️ Future success belongs to firms capable of meeting rising standards across regulation and platform consistency.
Read the full article at: https://www.financemagnates.com/thought-leadership/exness-sees-trust-as-the-key-theme-for-growth-in-mena-trading-growth-for-2026/
#Exness #MENA #Trading #FinTech #Dubai #OnlineTrading #FinanceMagnates #MohammadAmer #Trust #MobileTrading
Mohammad Amer, Regional Commercial Director at Exness, sits down to discuss the booming MENA financial trading market. Find out why Dubai is key to the company's growth strategy, how a mobile-first generation is changing expectations, and why trust will be the defining theme for traders in 2026.
In this interview, you'll learn:
* Why Dubai and the MENA region are critical growth markets for fintech and online trading.
* How Exness is addressing the demands of mobile-first, younger traders through engineering, platform stability, and transparent conditions.
* The essential role local talent plays in providing a culturally relevant and compliant user experience.
* Mohammad Amer's outlook on the future of the online trading industry and why stronger controls and systems are necessary.
* Why "trust" isn't just a brand value, but has commercial value—and why he predicts 2026 will be the "Year of Trust."
Key Takeaways:
➡️ The MENA region is rapidly shaping global financial markets.
➡️ New traders expect stability, precise execution, and transparency.
➡️ Local expertise is key to regulatory compliance and user experience.
➡️ Future success belongs to firms capable of meeting rising standards across regulation and platform consistency.
Read the full article at: https://www.financemagnates.com/thought-leadership/exness-sees-trust-as-the-key-theme-for-growth-in-mena-trading-growth-for-2026/
#Exness #MENA #Trading #FinTech #Dubai #OnlineTrading #FinanceMagnates #MohammadAmer #Trust #MobileTrading
Paytiko CEO Razi Salih on Why Payment Orchestration is a MUST-HAVE for Brokers in 2026
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Mr. Salih explains how global expansion, the need for deep localisation, and the sheer number of new payment methods, from instant banking to stablecoins, are driving this critical infrastructure shift.
#PaymentOrchestration #Fintech #Brokerage #TradingPayments #RaziSalih #Paytiko #iFXExpoDubai #Stablecoins #AIinFintech
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Mr. Salih explains how global expansion, the need for deep localisation, and the sheer number of new payment methods, from instant banking to stablecoins, are driving this critical infrastructure shift.
#PaymentOrchestration #Fintech #Brokerage #TradingPayments #RaziSalih #Paytiko #iFXExpoDubai #Stablecoins #AIinFintech
Altima CTO Sunil Jadhav: Solving Data Fragmentation & Lag for Brokers & Prop Firms
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Altima CTO Sunil Jadhav sits down with Finance Magnates to discuss the core technology challenges facing CFD brokers and proprietary trading firms today.
Jadhav explains how the industry's reliance on batch processing and fragmented systems (where CRMs, risk tools, and trading platforms operate with separate 'sources of truth') leads to delayed data and inconsistent operational decisions. He argues that real-time event processing is essential for managing fast-moving trading activity and risk.
Learn how Altima's unified, event-driven architecture, connecting Altima CRM, Altima Prop, IB systems, and risk management through a single backbone, is designed to provide synchronous data and better operational coordination for modern brokerage and prop firm stacks.
Key Topics:
- Broker and Prop Firm Data Challenges
- The problem of delayed data processing (batch processing vs. real-time events)
- Fragmented systems and conflicting data sources
- Altima's unified, event-driven solution architecture
- The concept of a "risk-aware CRM"
- Built-in risk management in Altima Prop
#Altima #financemagnates #iFXDubai #FinTech #BrokerTech #PropFirm #CFDBroker #TradingTechnology #RealTimeData #RiskManagement #CRM #FinancialMarkets #EventDrivenArchitecture
Altima CTO Sunil Jadhav sits down with Finance Magnates to discuss the core technology challenges facing CFD brokers and proprietary trading firms today.
Jadhav explains how the industry's reliance on batch processing and fragmented systems (where CRMs, risk tools, and trading platforms operate with separate 'sources of truth') leads to delayed data and inconsistent operational decisions. He argues that real-time event processing is essential for managing fast-moving trading activity and risk.
Learn how Altima's unified, event-driven architecture, connecting Altima CRM, Altima Prop, IB systems, and risk management through a single backbone, is designed to provide synchronous data and better operational coordination for modern brokerage and prop firm stacks.
Key Topics:
- Broker and Prop Firm Data Challenges
- The problem of delayed data processing (batch processing vs. real-time events)
- Fragmented systems and conflicting data sources
- Altima's unified, event-driven solution architecture
- The concept of a "risk-aware CRM"
- Built-in risk management in Altima Prop
#Altima #financemagnates #iFXDubai #FinTech #BrokerTech #PropFirm #CFDBroker #TradingTechnology #RealTimeData #RiskManagement #CRM #FinancialMarkets #EventDrivenArchitecture
