CFTC Adviser Ordered Retraction of Suspicious Oil Trades Referral
CFTC analysts flagged large futures trades that bet on stocks rising and oil falling shortly before Trump decided not to strike Iranian power plants. An adviser to the Trump-appointed CFTC chair told a market oversight supervisor to retract the referral to the enforcement division, which would have considered an insider trading investigation. A former CFTC enforcement director said such a retraction would have been unprecedented in previous administrations.
Before Trump’s March 23 choice to avoid hitting Iranian power facilities, traders placed enormous futures wagers in a narrow two-minute span at 6:49 a.m., positioning for equities to climb and crude to drop. CFTC market analysts sent the matter to enforcement staff, the usual route for deciding whether an insider-trading probe was warranted.
An adviser to Chair Michael Selig, Mel Gunewardena, allegedly instructed a market-oversight supervisor to withdraw that referral. Gunewardena, recently hired as international affairs head and senior markets adviser, previously worked at Goldman Sachs and State Street and at CFTC during Trump’s first term. Aitan Goelman, enforcement director from 2014 to 2017, called such a step unprecedented.
If confirmed, the retraction could affect public trust in financial oversight, especially among investors and market participants who rely on enforcement to deter insider trading. It may also shape how career staff respond to politically sensitive referrals, potentially discouraging internal reporting. The episode could intensify scrutiny of the CFTC as it seeks broader authority over prediction markets, affecting platforms, traders, and policymakers.