Individual Settles CFTC Charges for Manipulating Event Contract Tied to State of the Union Address

An individual settled CFTC charges for manipulating an event contract tied to his own attendance at the State of the Union address.

In the order, the CFTC found that the individual traded on a designated contract market using an event contract titled "Who will attend the State of the Union?" The CFTC found that the individual could influence the outcome of the underlying event - his own attendance - and manipulated the market by posting a series of material misrepresentations and omissions on social media regarding his travel plans. 

The CFTC found that the individual's conduct satisfied the scienter requirement because he acted intentionally or recklessly in making misleading statements to influence the contract price for his own benefit. The CFTC determined that the individual violated the anti-fraud and anti-manipulation provisions of Commodity Exchange Act Section 6(c)(1) ("Prohibition regarding manipulation and false information") and CFTC Rule 180.1 ("Prohibition on the employment, or attempted employment, of manipulative and deceptive devices").

The individual consented to a cease-and-desist order, a three-year ban from trading on any CFTC-registered entity, disgorgement of $17,569.98, and a $17,500 civil monetary penalty.