Found this and just curious about the validity of the article.
Fact or fiction? If it is fact, what are the implications?
Lawsuit Stunner: Half of Futures Trades in Chicago Are Illegal Wash Trade
"The most stunning allegation in the lawsuit is that an estimated 50 percent of all trading on the Chicago Mercantile Exchange is derived from illegal wash trades."
"Wash trades were a practice by the Wall Street pool operators that rigged the late 1920s stock market, leading to the great stock market crash from 1929 through 1932 and the Great Depression. Wash trades occur when the same beneficial owner is both the buyer and the seller. Wash trades are banned under United States law because they can falsely suggest volume and price movement."
I don't know much about the commodity exchanges but I would hope with their importance that the government watchdogs would be providing significant oversight to eliminate these types of illegal practices.
Thanks for sharing this post, I am going to do some reading on the topic.