This is grand.
The CME Group has fined Glenn Hadden $80,000 and given a 10-day suspension from trading on the CME after a Treasury futures trade that ‘violated rules’ in 2008.
Hadden
The details of what went wrong are murky but it took place Friday Dec 19, 2008 when Hadden was a star trader at Goldman Sachs. It was a wild month in markets and futures expiration day.
The New York Times previously reported officials were:
investigating whether Mr. Hadden’s purchases or sales of Treasury futures late in the trading day manipulated closing prices in the market and, in turn, made other of his trades more profitable, according to people briefed on the matter who were not authorized to speak publicly.
Today’s decision says:
Hadden was trying to cover some market risk associated with a position he had just before the close on the day the trading in question happened. He had difficulty with the trade because the market was quite illiquid, and was found to have not unwound the position in an orderly manner.
At Goldman (perhaps later) he was head of government bond trading and he’s currently the head of global interest rates products at Morgan Stanley.
There appears to be another incident that took place later but the timeline is muddled, according to the press in Canada, where Hadden is from.
In an unusual move, Mr. Hadden was placed on paid leave for roughly a year before his departure from Goldman [in 2011]. The firm took the step after regulators at the Federal Reserve Bank of New York complained about Goldman’s trading involving government bonds, according to a person familiar with the matter.
At this point it’s unclear exactly what he did and who profited and it may never be revealed. Whatever it was, it certainly hasn’t hurt his career.
In the final tally, he got a full year of paid leave from Goldman, a promotion to one of the top positions at Morgan Stanley, an $80K fine and two weeks of vacation (which will conveniently begin July 15).