CME Fines Morgan Stanley For Overstating Crude Oil Futures

Law360, New York (June 8, 2012, 8:23 PM EDT) -- Derivatives exchange CME Group Inc. on Friday fined Morgan Stanley & Co. $50,000 for allegedly overstating its open interest in a crude oil futures contract, just days after the bank entered into a $5 million settlement with federal commodities regulators over off-exchange futures trades.

CME said in a disciplinary notice that Morgan Stanley overstated its position in the physically settled December 2011 crude oil futures contract by 13,267 contracts — or 51.6 percent — during trading on CME’s New York Mercantile Exchange on Nov. 17, one...
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