18 October 2017
Find out more

CFTC charges former Goldman trader over $118m loss

09 November 2012  |  5300 views  |  0 Goldman Sachs logo web screen shot

A former Goldman Sachs trader has been charged by US regulators with bypassing internal systems to conceal an $8.3 billion position from the bank and defraud it of $118 million.

According to the Commodity Futures Trading Commission (CFTC), in late 2007 Matthew Marshall Taylor, while trading a firm account, entered fake e-mini futures trades into the bank's manual trade entry system to conceal and misrepresent the size of his true position.

Taylor is accused of entering the fabricated trades by bypassing internal system designed for entering and routing electronically to the CME, instead manually putting them in a different internal system that routed only to the firm's books and records, not to the exchange.

The plan was designed to conceal an $8.3 billion futures position and cost the bank $118.44 million, says the CFTC, which is seeking civil monetary penalties, and trading and registration bans.

The CFTC has not named Goldman as Taylor's employer but, according to Reuters, Financial Industry Regulatory Authority records show that the bank fired him in December 2007 for "alleged conduct related to inappropriately large proprietary futures positions in a firm trading account".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Goldman's muppet hunt trail goes cold

Goldman's muppet hunt trail goes cold

11 October 2012  |  4246 views  |  0 comments
Former Goldman programmer arrested again over HFT code theft

Former Goldman programmer arrested again over HFT code theft

10 August 2012  |  8784 views  |  0 comments
UBS 'rogue trader' Adoboli pleads not guilty

UBS 'rogue trader' Adoboli pleads not guilty

30 January 2012  |  6062 views  |  3 comments

Related company news

 

Related company information

Goldman Sachs

Related blogs

Create a blog about this story (membership required)
Register nowvisit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15331 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8503 views comments | 16 tweets | 22 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
8037 views 0 | 8 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7560 views comments | 13 tweets | 9 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6672 views comments | 8 tweets | 16 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job