17:13 ET<\/span><\/span><\/p>\nUS regulators have fined a former hedge fund trader $30m (\u00a318.2m) for manipulating the natural gas market.<\/p>\n
The Federal Energy Regulatory Commission (Ferc) levied the fine on Brian Hunter, Amaranth’s lead energy trader, for violating the Commission’s anti-manipulation rules.<\/p>\n
The fine comes as President Barack Obama said a team was being assembled to look for fraud in the oil market.<\/p>\n
Natural gas and oil are heavily traded commodities on which huge bets ride.<\/p>\n
Mr Obama said the attorney general was assembling a team that would look for any evidence of market manipulation in the oil market, which is closely linked to – and trades in a similar way to – the gas market.<\/p>\n
He pointed the finger at “speculators,” saying a new justice department task force would “root out any cases of fraud or manipulation” that may have caused higher prices.<\/p>\n
The average gallon of US petrol costs 35% more than it did a year ago.<\/p>\n
Earlier this week Mr Obama said the lack of supply was not the only reason petrol prices were rising, saying speculation also played a part.<\/p>\n
Risk<\/span><\/p>\nUS lawmakers are looking at other ways of controlling the commodities markets, including rules limiting the number of trading contracts any one company can control.<\/p>\n
Many companies use oil contracts to hedge against risks to their business and commodities markets have a role to play in setting prices.<\/p>\n
Thursday’s fine stems from a July 2007 enforcement action against Amaranth, Mr Hunter and another trader, Matthew Donohoe.<\/p>\n
It alleged that they had engaged in a manipulative scheme in the natural gas futures market that directly affected the price of certain natural gas transactions.<\/p>\n
Ferc said the scheme included the sale of large amounts of natural gas futures contracts – agreements to buy or sell a commodity at a set price at some future date – which were intended to drive down their price, something that would benefit both the company and the two traders.<\/p>\n
Ferc settled in 2009 with Amaranth and Mr Donohoe.<\/p>\n
Amaranth Advisors, a US-based hedge fund, lost about $6bn (\u00a33.2bn) betting on gas prices in 2006, which lead to calls for greater regulation of such investment companies’ activities.<\/p>\n
The company fell in what was the biggest hedge fund collapse ever.<\/p>\n
Michael Kim, lawyer for Mr Hunter, would not say whether his client would pay the fine or appeal the decision.<\/p>\n<\/div>\n
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