LONDON, Sept 2 (Reuters) - The U.S. Commodity Futures Trading Commission (CFTC) on Aug. 27 ordered TOTSA TotalEnergies Trading SA, a trading unit subsidiary of energy major TotalEnergies (TTEF.PA) , opens new tab, to pay a $48 million fine for alleged gasoline market manipulation.

“In numerous cases over the past 20 years, the CFTC has guarded market integrity by detecting and prosecuting these benchmark-related schemes," CFTC director of enforcement Ian McGinley said in relation to the TOTSA case.

Several companies have been fined by the U.S. regulator for what it says is oil and gas market malpractice. Below are some examples:

TotalEnergies:

The CFTC fined TOTSA $48 million for attempted market manipulation in March 2018.

TOTSA was found to have held a short position in the Eurobob gasoline futures market, while flooding the physical market that underpins the derivative contract with supply it was attempting to sell below buyers' indicative bid levels.

In 2015, a North American unit of Total and a trader agreed to pay $3.6 million to settle charges of attempted manipulation in the U.S. natural gas market.

Vitol:

In August 2024, commodity trading house Vitol agreed to pay $500,000 to settle charges with the CFTC relating to the firm exceeding position limits for certain exchange-traded oil and cattle contracts during 2022.

In 2020, Vitol agreed to pay $95.7 million to settle corruption-based fraud and attempted market manipulation charges. The CFTC found that Vitol made bribes and kickback payments to employees and agents of state-owned entities in Brazil, Ecuador, and Mexico for "preferential treatment and access to trades".

In 2010, Vitol said it would pay $6 million to settle charges that it failed to disclose material facts to the New York Mercantile Exchange (NYMEX) over the close relationship between Vitol's Houston unit and Vitol Capital Management Ltd, both affiliates of Vitol Group.

Trafigura:

In June 2024, a U.S.-based unit of commodity trading house Trafigura agreed to pay a $55 million settlement to the CFTC on charges of fraud, manipulation and impeding whistleblower communications.

Houston-based Trafigura Trading LLC violated U.S. law and regulations during 2014-2019 by trading gasoline with material non-public information, manipulating an oil pricing benchmark, and requiring current and former employees to sign agreements barring them from sharing company information.

Freepoint Commodities:

Connecticut-based Freepoint Commodities LLC agreed in late-2023 to pay a $98 million settlement against charges connected to a scheme to misappropriate material non-public information and bribe officials in Brazil between 2012 and 2018.

Glencore:

The CFTC issued global commodities trading house Glencore (GLEN.L) , opens new tab with a $1.186 billion fine for "manipulative and deceptive conduct" between 2007-2018 in U.S. and global oil markets, including four U.S. physical oil benchmarks and related futures and swaps.

Around the time, Glencore said it was preparing to pay up to $1.5 billion in total to settle investigations in Brazil, Britain and the United States.

Equinor:

Norway's state-controlled Equinor (EQNR.OL) , opens new tab, then known as Statoil, said it would pay a $4 million settlement with the CFTC in 2017 after it was found to have attempted to manipulate the Argus Far East Index, which helps to determine propane prices, in 2011.

Arcadia:

In 2014, now-defunct oil trading house Arcadia, and two traders, agreed to pay $13 million and accepted a three-year limit on trading U.S. benchmark crude, in a price manipulation lawsuit regarding trading activity in 2008.

Panther Energy Trading:

In 2013, the CFTC fined U.S. high-frequency trading outfit Panther Energy Trading LLC and its owner Michael Coscia $2.8 million for "utilising a computer algorithm that was designed to illegally place and quickly cancel bids and offers in futures contracts," including the U.S. Light Sweet Crude Oil and natural gas contracts on the Chicago Mercantile Exchange (CME).

Morgan Stanley:

Investment bank Morgan Stanley (MS.N) , opens new tab was fined $14 million in 2010 for delaying reporting a big block oil trade until after the market had closed.

Energy Transfer Partners:

In 2008, the CFTC obtained a $10 million fine from Energy Transfer Partners and three subsidiaries to settle a CFTC action relating to attempted manipulation of U.S. natural gas prices in late 2005.

BP:

BP (BP.L) , opens new tab agreed to pay $303 million to settle CFTC charges regarding the manipulation of U.S. propane markets.

The CFTC alleged that BP cornered the TET Propane market in February 2004, and attempted a similar manouevre in April 2003.

Marathon Petroleum:

In 2007, Marathon Petroleum (MPC.N) , opens new tab agreed to pay a $1 million civil penalty to settle charges with the CFTC over attempted manipulation of the U.S. West Texas Intermediate (WTI) crude spot price in Nov. 2003.

Enron:

In 2004, Enron Corp. said it would pay a $35 million civil monetary penalty to settle charges that it manipulated in the U.S. natural gas market in 2001.

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https://www.reuters.com/markets/commodities/us-cftcs-fines-against-energy-traders-2024-09-02/