On July 25 and 26, respectively, the Commodity Futures Trading Commission (CFTC) and Federal Energy Regulatory Commission (FERC) filed legal actions against Amaranth Advisors, a hedge fund that collapsed last September, alleging intentional manipulation of natural gas futures prices. CFTC's civil enforcement action in U.S. District Court for the Southern District of New York also named former head energy trader Brian Hunter as a defendant. The FERC accusation named another trader, Matthew Donohoe, in addition to Hunter. The defendants denied wrongdoing through their lawyers, who also questioned FERC's jurisdiction in a matter pertaining to futures markets.
The CFTC characterized its complaint as a sign of "ongoing vigilance to punish those who attempt to compromise the integrity of the futures markets," as stated by the commission's acting chairman, Walter Lukken. Added commissioner Michael Dunn: "The filing sends an important message to market participants that such conduct will be met with appropriate sanctions."
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