The U.S. Commodity Futures Trading Commission (CFTC) reports that it has entered into a consent order settling charges against Brian Hunter, a resident of Calgary and former head trader at Amaranth Advisors, for attempting to manipulate the price of natural gas futures contracts traded on the New York Mercantile Exchange (NYMEX) during the expiry on February 24 and April 26, 2006.
The order, which was entered in the U.S. District Court for the Southern District of New York, requires that Hunter pay a $750,000 civil penalty, and it permanently bans him from trading in the settlement period for the last day of trading in all CFTC-regulated products, and from trading all CFTC-regulated natural gas products during the daily close. It also permanently prohibits him from registering with the CFTC, or claiming exemption from registration.
Back in 2007, the CFTC alleged, among other things, that Amaranth Advisors, LLC and Amaranth Advisors (Calgary) ULC and Hunter attempted to manipulate the price of natural gas futures on the NYMEX. It settled the charges against Amaranth back in 2009, with the firm agreeing to pay a US$7.5 million penalty.