Glencore, the former director of the v rivals price-fixing
The Glencore former cotton trading director Mark Allen (Mark Allen) prosecuted in his own name Glencore rival, Louis Dreyfus commodity (Louis Dreyfus Commodities), said the latter to manipulate the market. The unusual move to make people to get a glimpse of the inner workings of the cotton market.
Allen claimed in the complaint, Louis Dreyfus and several subsidiary bodies, raise the price of cotton futures in May 2011 to July. Glencore last year in the cotton trading losses of more than 330 million U.S. dollars, and then fired Allen.
In fact, the case shows that, in the mystery of the cotton trading industry, there is one industry believes that the cotton futures market last year as long as several weeks to be manipulated, forcing consumers to pay higher prices.
Washington and Brussels to seek lawmakers to strengthen the regulation of global commodity, and may pay close attention to this case.
The 65 collective indictment, mainly for transactions in the spring and summer of last year. In March of last year, cotton prices climbed to record highs, reaching $ 2.27 per pound, only a few weeks after falling to $ 0.9 per pound.
Allen alleges that by building bullish positions on the high prices much higher than the physical market-led price, Louis Dreyfus deliberately manipulated and artificially pushed higher in New York Intercontinental Exchange (IntercontinentalExchange ICE) in cotton futures prices . The former Cotton, head of trading at Glencore claimed that even in the physical market dealer to provide lower prices for cotton Louis Dreyfus, Louis Dreyfus refused to buy.
The complaint claimed that the Louis Dreyfus in May 2011 and July contract “price manipulation” and added that “in accordance with the economic logic, the defendant (Louis Dreyfus) should buy the lower price of cotton in the spot (physical) market, and higher prices of futures contracts sold in the ICE.
However, some cotton traders, Louis Dreyfus Cotton Exchange Department (led by veteran trader Joe (Joe Nicosia), Nicosia) have the right to buy on the ICE cotton and refused other transaction intention.
Nicosia and Louis Dreyfus did not respond to requests for comment. The defendants have not yet respond to the lawsuit filed by the plaintiff in last Friday.
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