The CFTC announced that the U.S. Court of Appeals for the Second Circuit affirmed the CFTC’s November 5, 2008 decision finding that Anthony J. DiPlacido manipulated settlement prices for electricity futures contracts on NYMEX.
DiPlacido argued that the Commission denied him due process by abandoning an existing requirement for proof of the defendant’s control over the relevant market. The Commission’s, precedents however, are to the contrary, indicating that market control may be a feature of some forms of manipulation, e.g., a “corner” or “squeeze,” but is not a requirement of manipulation in all its forms.