FERC assesses penalties in Cal-ISO market manipulation case, singles out trader

摘要

Signaling a potential move toward stiffer consequences for individualsaccused of market manipulation, particularly repeat offenders, theFederal Energy Regulatory Commission ordered energy tradingcompany Vitol and one of its senior traders to pay $3.7 million in finesand disgorged profits after finding that the entities manipulatedCalifornia Independent System Operator’s energy market in 2013.The commission hit Vitol with a smaller fine than the agency’spenalty guidelines called for based on its findings that the trader whoconceived of and primarily carried out the allegedly manipulativescheme withheld material information from the company. In light ofthat, FERC reduced Vitol’s culpability and split the penaltyresponsibility with that trader.