|In the first application of its new enforcement capability, the Federal Energy Regulatory Commission (FERC) finally acted on its finding that a former trader violated trading rules resulting in illegal profits. According to FuturesMag.com, Brian Hunter, formerly of Amaranth Advisors LLC, was found to have engaged in price manipulation of natural gas futures in 2006 for the purpose of increasing the profits generated from derivative investments. |
The $30 million fine handed down on April 25, 2011 comes after three years of litigation against Brian Hunter and an initial ruling by an administrative law judge that anti-manipulation rules were violated. Amaranth Advisors settled with FERC in August of 2009. The large fine is the first exercise of FERC’s expanded authority to discourage price manipulation under the Natural Gas Act.