`Fines Against Olive Oil Futures Market Revealed

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Fines Against Olive Oil Futures Market Revealed

Jun. 17, 2014
Julie Butler

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Seri­ous breaches, includ­ing mar­ket manip­u­la­tion, by the Jaén-based Olive Oil Futures Mar­ket were revealed today in a Span­ish gov­ern­ment bul­letin.

It said both the mar­ket (MFAO for its ini­tials in Span­ish) and then direc­tor gen­eral José Luis Alonso Fer­nán­dez, were fined a total of about €70,000 ($95,000) over the breaches, which took place sev­eral years ago. Pub­li­ca­tion of details of the penal­ties was approved in a res­o­lu­tion by the CNMV, the agency over­see­ing the Span­ish stock mar­ket, just last month.

Accord­ing to the gov­ern­ment bul­letin (BOE), on Octo­ber 3, 2012, the CNMV imposed a €15,000 fine against the MFAO and €20,000 against Alonso for prac­tices of mar­ket manip­u­la­tion between Feb­ru­ary 2009 and Novem­ber 2010 that pro­vided false or mis­lead­ing sig­nals regard­ing sup­ply, demand or price.

And on July 9 last year, it imposed fines of the same amounts against both for not merely occa­sional or iso­lated” breaches of rules gov­ern­ing the MFAO.

Accord­ing to Span­ish olive oil pub­li­ca­tion Olimerca, Manuel León, pres­i­dent of the Jaén-based mar­ket, said the MFAO’s gov­ern­ing body had coop­er­ated fully with the CNMV from the moment it became aware of the prac­tices and also opened its own line of inves­ti­ga­tion. Alonso ceased being direc­tor gen­eral at the end of 2010 and all the fines had been set­tled last Sep­tem­ber.

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Leon said Alonso’s actions did not cause harm to any client or oper­a­tor in the MFAO, and the irreg­u­lar oper­a­tions formed just 5 – 6 per­cent of the total vol­ume of con­tracts in the mar­ket, Olimerca reported.


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