Regulators Examine Oil Futures Trades Made Before Ceasefire Announcement

The Commodity Futures Trading Commission is examining oil futures trades placed by at least three firms on March 23, the Wall Street Journal reported. The trades occurred shortly before a social media post announcing a ceasefire extension. Regulators are looking at activity by Qube Research & Technology, Totsa, and Forza Fund Ltd.

Documents reviewed by the Journal show Qube earned about $5 million, Totsa earned $200,000, and Forza Fund earned about $10 million from the trades.

The CFTC began reviewing suspicious oil market activity in April, Reuters reported earlier. The Justice Department is conducting a separate review of trades linked to announcements made around the same period. The firms have not been accused of any wrongdoing.

Qube's chief operating officer told the Journal that trading decisions are model-driven. Totsa stated it was unaware of any CFTC investigation and complies with all market regulations. A Chinese firm associated with Forza Fund also told the Journal it was unaware of regulatory scrutiny.

At least some of the March 23 trades followed an article published by Semafor about 33 minutes before the social media post. The broader set of trades under review across multiple dates in March and April generated roughly $2.6 billion for traders, according to the Journal.