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CFTC Seeks Trader IDs in Probe of Oil Bets Before Trump Iran Announcements

The data demand signals a push to deter trading on nonpublic policy news.

Overview

  • The CFTC, which requested Tag 50 trader identifiers from CME Group and Intercontinental Exchange on Wednesday, is working to trace who placed the questioned oil futures positions.
  • Investigators are reviewing two episodes over late March and early April, including a surge about 15 minutes before the March 23 strike delay post and an approximately $950 million bet hours before the April 7 ceasefire announcement.
  • CFTC Chair Michael Selig told Congress on Thursday that the agency will pursue fraud, manipulation, or insider trading, and the agency has not announced any charges.
  • Lawmakers including Senators Elizabeth Warren and Sheldon Whitehouse urged a full inquiry, and the White House on March 24 warned staff not to use nonpublic information for trading.
  • Tag 50 functions as an exchange-level ID that ties a trade to the executing firm, which helps regulators identify traders in markets where other venues offer little visibility.