Rep. Ritchie Torres, D-N.Y., has formally requested that the Securities and Exchange Commission and the Commodity Futures Trading Commission review trading activity in the oil and equity futures markets that occurred immediately before a temporary pause in hostilities involving Iran last month.
On Wednesday, Torres transmitted a written appeal to the leaders of both agencies, highlighting what he described as a pronounced spike in trading volume that preceded President Donald Trumps announcement of a five-day pause on attacks in March. The congressmans letter, which was obtained first by CNBC, asks regulators to examine the pattern and timing of those trades.
The request follows earlier statements by Torres raising concerns about the appearance of insider trading on prediction markets connected to a separate geopolitical event. Earlier this year, he flagged suspicious activity on such markets ahead of the ouster of Venezuelan President Nicol E1s Maduro.
In his correspondence to the SEC and CFTC, Torres emphasized the need for scrutiny of market moves that align closely with sensitive government announcements. The letter draws attention to the clustering of trades in the moments before the public statement that declared a five-day pause in offensive actions in March.
The congressmans appeal does not, in the available text, name specific trading firms or individual accounts, nor does it present formal allegations of wrongdoing beyond the call for a regulatory review. The information included in the letter, and the timing of its delivery on Wednesday, was reported after regulators received the request.
Torress outreach to the two principal federal market overseers underscores a push by a member of Congress to have market behavior around major geopolitical announcements reviewed by professional regulators. The current material reflects his concern about trade patterns that coincided with high-profile political developments, including the pause on attacks announced in March and the previously noted activity around the Venezuelan leadership change earlier in the year.
What we know
- Torres asked the SEC and CFTC to investigate trades in oil and equity futures that occurred before a pause in hostilities in Iran last month.
- He sent a letter on Wednesday to the heads of both agencies calling attention to a spike in trades immediately before President Donald Trumps announcement of a five-day pause on attacks in March.
- The letter was obtained first by CNBC.
- Earlier this year Torres raised concerns about the appearance of insider trading on prediction markets before the ouster of Venezuelan President Nicol E1s Maduro.