Goldman Sachs and Glenn Hadden, one of Wall Street’s top traders, have been fined by the CME Group over a Treasury futures trade in 2008.
The CME Group, which runs commodity and futures exchanges, has notified both Goldman and Mr. Hadden, once a top trader at Goldman Sachs who now runs global interest rates desk at Morgan Stanley, that both face fines and other sanctions in connection with the trade, according to a disciplinary action reviewed by The New York Times.
Goldman has been ordered to pay $875,000 and cited for failure to supervise Mr. Hadden. Mr. Hadden has been ordered to pay $80,000. He faces a 10-day suspension, starting July 15, from “directly accessing all CME Group Inc. trading floors, and indirect and direct access to all electronic trading and clearing platforms owned or controlled by CME Group Inc.â€
Although the CME issues several citations a month, it is rare for a top trader to be sanctioned.
Mr. Hadden, the CME said, in the last minutes of trading Dec. 19, 2008, engaged in trading that violated CME rules. Goldman was fined over failing to supervise Mr. Hadden.
A Goldman spokesman said the firm is happy to have the matter resolved. A Morgan Stanley spokesman said: “Mr. Hadden is an employee in good standing as the global head of rates at Morgan Stanley.†A lawyer for Mr. Hadden did not have an immediate comment on the case.
