Tuesday, September 17, 2013

Trader sues U.S. swap regulator to stop "unfounded" case

(Reuters) - A Chicago speed-trading firm sued the U.S. swaps regulator on Tuesday, saying it acted to prevent the agency from bringing an "unfounded" case against it for manipulating futures contracts.
DRW Investments and its founder Donald R. Wilson, for whom the firm is named, filed the lawsuit against the Commodity Futures Trading Commission in the U.S. District Court for the Northern District of Illinois.
"Any claim the CFTC may bring against DRW on this matter would be completely unfounded," the company said in a press release.
DRW has been the subject of a CFTC inquiry for nearly two years and found out about the probe when the CFTC requested documents in August 2011, Craig Silberberg, a DRW employee, said in a declaration filed in support of the case.
In April 2013, the CFTC's Division of Enforcement informed DRW that it intended to recommend that the Commission file an enforcement action, he added.
"DRW therefore understands that the filing of an enforcement action by the CFTC is imminent, unless the Enforcement Division's recommendation is rejected by the Commission," said Silberberg, who oversees some of DRW's trading operations.