CFTC Fines Copersucar Trading $300,000 Over Illegal Wash Trades

The order requires Copersucar to cease and desist from further violations.

The US Commodity Futures Trading Commission (CFTC) has settled charges against Copersucar Trading AVV, a commodities trading subsidiary of Copersucar SA, which executed wash trades, illegal and noncompetitive transactions in several ICE futures products.

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A CFTC order requires São Paolo-based Copersucar to pay a civil penalty of $300,000 for carrying out wash trades involving Sugar No. 11 futures Trade at Settlement (TAS) contracts traded on ICE Futures US, a designated contract market, the regulator said Tuesday.

In its order, the commission said authorized agents of Copersucar entered equal and opposite transactions in the same futures contract for another account owned by the same company, matching details including the product, quantity, price and timing of those trades and orders.

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The trades took place between April 2013 and September 2014, the agency said.

Along with paying the penalty, Copersucar has conducted several changes to its business operations and modified certain trading methods to reduce the need to transfer positions at or around the end of each month.

“Additionally, Copersucar has represented that it has instituted a number of changes in its policies and procedures in order to prevent future violations, including additional guidance regarding the wash trade prohibition and applicable contract market rules, use of self-trade prevention technology, and training for its agents,” the CFTC said in a statement.

Finally, the order requires the company to cease and desist from further violations of the relevant CEA and CFTC regulation it has been charged with breaching.

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