CFTC Milks Ecoval For $1.4M Over Market Manipulation

Law360, New York (July 19, 2011, 9:51 PM EDT) -- The U.S. Commodity Futures Trading Commission announced on Tuesday that the Pennsylvania-based U.S. arm of Dutch dairy concern Ecoval Dairy Trade Inc. will pay $1.4 million to settle claims that it attempted to manipulate powdered milk futures.

The CFTC claims that Ecoval tried to engineer higher market prices for nonfat dry milk cash-settled futures contracts on the Chicago Mercantile Exchange so the company could establish large short positions in monthly futures contracts at higher sales prices.

Starting in September 2007, the agency says, the company employed...
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