Brokerage

Former Optionable CEO Hit With $1M BMO Trading Penalty

Nearly two years after Kevin Cassidy, former CEO of Valhalla, NY-based brokerage firm Optionable Inc., pleaded guilty to one count of conspiracy to commit wire fraud in connection with a 2003-2007 natural gas commodities trading scandal at Bank of Montreal (BMO), the Commodity Futures Trading Commission (CFTC) late last week reported that it has obtained a federal court order requiring Cassidy to pay a $1 million civil monetary penalty for violating the anti-fraud provisions of the Commodity Exchange Act (CEA) and CFTC regulations.

June 3, 2013

Former Optionable Inc. CEO Hit With $1M BMO Trading Scandal Penalty

Nearly two years after Kevin Cassidy, former CEO of Valhalla, NY-based brokerage firm Optionable Inc., pleaded guilty to one count of conspiracy to commit wire fraud in connection with a 2003-2007 natural gas commodities trading scandal at Bank of Montreal (BMO), the Commodity Futures Trading Commission (CFTC) on Thursday reported that it has obtained a federal court order requiring Cassidy to pay a $1 million civil monetary penalty for violating the anti-fraud provisions of the Commodity Exchange Act (CEA) and CFTC regulations.

May 31, 2013

People

Kevin Cassidy, former CEO of Valhalla, NY-based brokerage firm Optionable Inc., has pleaded guilty to one count of conspiracy to commit wire fraud in connection with a 2003-2007 commodities trading scandal at Bank of Montreal (BMO). Cassidy was among the Optionable and BMO employees who were charged by federal and state authorities in 2008 for deceiving and defrauding the bank about the true value of its natural gas options book (see NGI, Nov. 24, 2008). A multi-count indictment charged Cassidy with criminal counts of wire fraud, making false statements to a bank, making false and misleading statements to the Securities and Exchange Commission and securities fraud. Under terms of the plea agreement, Cassidy would serve 30-37 months in prison. Cassidy also agreed to forfeit illegally obtained profit from the deal and could be fined. He is scheduled to be sentenced Dec. 15 in U.S. District Court for the Southern District of New York.

August 29, 2011

Former Optionable CEO Pleads Guilty to Conspiracy

Kevin Cassidy, former CEO of Valhalla, NY-based brokerage firm Optionable Inc., pleaded guilty Monday to one count of conspiracy to commit wire fraud in connection with a 2003-2007 commodities trading scandal at Bank of Montreal (BMO).

August 17, 2011

ICE Looks to Tackle Hurdle of Taking OTC Energy Options On-line

In a move designed to develop the electronic marketplace for over-the-counter (OTC) energy options, IntercontinentalExchange Inc. (ICE) said Monday it plans to acquire the assets of OTC brokerage Chatham Energy Partners LLC for an undisclosed amount. The possibility of cracking the complex code for taking any form of options on-line could remove the last prop keeping the open outcry energy pit trading alive on the New York Mercantile Exchange’s (Nymex) trading floor, according to some traders.

September 11, 2007

Lehman Brothers Invests in Physical Gas, Power Marketer Eagle Energy

The banking/brokerage link-up with energy trading is continuing. Lehman Brothers Merchant Banking has taken a one-third interest in Houston-based energy marketer Eagle Energy Partners. Lehman, producer Chesapeake Energy, and Eagle management each will own one-third of the company.

April 3, 2006

Broker: Fund Positions Indicate Upside Futures Trend Hasn’t Ended

Urging market participants to move beyond the traditional risk management tools when trading natural gas futures, Tom Saal, of Commercial Brokerage Corp., said Wednesday that it is important to develop new techniques for identifying price trends and market timing. One pretty good way of identifying a “buy” signal recently has been simply observing how short the funds, or noncommercial traders, are.

June 23, 2005

Competition Among Trading Platforms Heats Up

The battle lines are forming as competition for recognition as the top online energy trading platform heats up. The Energy Trading Platform Holding Company (ETPHCo.), comprised of six of the leading power and natural gas trading companies, has entered into a deal to purchase an interest in Atlanta-based IntercontinentalExchange, which claims to be the world’s largest Internet-based, over-the-counter (OTC) marketplace for energy and metals.

July 31, 2000