Christopher Louis Pia,

51

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,,'.-0 = .... " -. r' i= 0"" 11-17:;' 0 :::! • CFTC Docket No. " . S': -"~ N ."n

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ORDER INSTITUTING PR9~~DI~S ~'~

PURSUANT TO SECTION$i)6(c), 6(d)1rnd

8a OF THE COMMODITY E~CHANct

ACT AND MAKING FINDINGS AND

IMPOSING REMEDIAL SANCTIONS

UNITED STATES OFAMERICA

BEFORE THE

COMMODITY FUTURES TRADING COMMISSION

In the Matter of:

Respondent.

I.

The Commodity Futures Trading Commission ("Commission") has reason to believe that

Christopher Louis Pia ("Pia" or "Respondent") violated Sections 6(c), 6(d) and 9(a)(2) of the

Commodity Exchange Act (the "Act"), 7 U.S.C. §§ 9, 13b and 13(a)(2) (2006). Therefore, the

Commission deems it appropriate and in the public interest that public administrative

proceedings be, and they hereby are, instituted to detennine whether Pia engaged in the

violations set forth herein, and to detennine whether any order should be issued imposing

remedial sanctions.

II.

In anticipation of the institution of an administrative proceeding, Pia submitted an Offer

of Settlement ("Offer"), which the Commission has detennined to accept. Without admitting or

denying any of the fmdings or conclusions herein, Pia acknowledges service of this Order

Instituting Proceedings Pursuant to Sections 6(c), 6(d) and 8a of the Commodity Exchange Act

and Making Findings and Imposing Remedial Sanctions ("Order").!

I Pia consents to the entry ofthis Order, the use of these findings in this proceeding and in any

other proceeding against Pia brought by the Commission or to which the Commission is a party;

provided, however, that Pia does not consent to the use of the Offer, or the findings or

conclusions consented to in this Order, as the sole basis for any other proceeding brought by the

Commission, other than in a proceeding in bankruptcy or to enforce the terms ofthis Order. Nor

does Pia consent to the use ofthe Offer or this Order, or the findings or conclusions consented to

in the Offer or this Order, by any other party in any other proceeding.

1
III.

The Commission finds the following:

A. Summary

Commencing in at least November 2007 until May 2008 (the "Relevant Period"), Pia,

while employed as a portfolio manager for Moore Capital Management, LLC ("Moore Capital"),

attempted to manipulate the settlement prices of palladium and platinum futures contracts traded

on the New York Mercantile Exchange ("NYMEX"). Pia engaged in a trading practice known as

"banging the close." Specifically, Pia caused to be entered market-on-close ("MOC") buy orders

that were executed in the last ten seconds ofthe closing period for both contracts in an attempt to

exert upward pressure on the settlement prices of the futures contracts. Pia engaged in this

trading strategy at Moore Capital frequently throughout the Relevant Period.

B. Respondent

Christopher Louis Pia resides in North Castle, New York. During the Relevant Period,

Pia served as a portfolio manager of Moore Capital, which was a registered commodity trading

advisor ("CTA"), a predecessor of Moore Capital Management, LP. Pia was formerly registered

as an associated person ("AP") ofMoore Capital.

C. Facts

1. NYMEX Palladium and Platinum Futures Contracts

Palladium and platinum futures contracts are traded on the NYMEX. During the

Relevant Period, the majority of trades in NYMEX palladium and platinum futures contracts

were executed on the electronic trading platform, Globex, rather than on the floor. The number

of traders in the palladium and platinum pit on the NYMEX floor was fewer than ten on any

given date.

The settlement prices of both the NYMEX palladium and platinum futures contracts are

calculated based on the volume-weighted average price of all transactions conducted both on the

trading floor and on Globex, during the two-minute closing period for the contracts. The closing

period for trading palladium futures contracts is from 12:58 p.m. to 1:00 p.m., and the closing

period for trading platinum futures contracts is from 1:03 p.m. to 1:05 p.m. Globex and the

trading pit trade side-by-side through the close. Trading continues on Globex after the close of

trading in the pit.

Trading in both contracts was relatively illiquid, and Pia's trading in the contracts on the

close frequently accounted for a significant portion ofthe volume.

Pia's trading strategy took advantage of these key characteristics of these two futures

markets - thinly traded, illiquid, and volume-weighted average settlement price calculations - to

attempt to manipulate the daily settlement prices.

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2. The Manipulative Scheme

During the Relevant Period, while employed at Moore Capital, Pia frequently engaged in

a trading strategy in an attempt to manipulate upward the settlement prices ofthe palladium and

platinum futures contracts. The platinum and palladium trades executed by Pia were placed in

two Moore Capital investment funds, the Moore Macro Fund, LP and the Moore Global Fixed

Income Master Fund, LP. Moore Capital Advisors, LLC and Moore Advisors, Ltd. acted as the

CPOs for these two funds and Moore Capital was the trading advisor.

During the Relevant Period, Pia either directly or through Moore Capital execution

clerks, placed MOC buy orders in platinum and palladium futures contracts through an AP of a

futures commission merchant ("FCM"). The FCM then relayed Pia's orders to the floor through

a NYMEX floor clerk. Pia's MOC buy orders executed on the floor during the close generally

ranged from 20 to 100 contracts, which were relatively large orders for the relatively illiquid

palladium and platinum markets. Typically, Pia's orders constituted a large percentage of the

volume oftrading on the close.

Pia or the Moore Capital execution clerk routinely submitted MOC buy orders in

platinum and platinum futures to the FCM's AP through instant messages, among other means.

Pia placed MOC orders with the FCM's AP with directions that indicated that he wanted to push

the settlement prices higher.

To effectuate Pia's scheme, the FCM's AP waited until the last ten seconds ofthe closing

periods of platinum and palladium futures trading to place Pia's buy orders with the floor clerk,

who worked in the NYMEX trading pit.

Pia engaged in this manipulative strategy throughout the Relevant Period.

D. Legal Discussion

1. Pia Attempted to Manipulate the Settlement Prices of NYMEX Palladium

and Platinum Futures Contracts

Together, Sections 6(c), 6(d), and 9(a)(2) of the Act prohibit acts of attempted

manipulation. Section 9(a)(2) of the Act makes it unlawful for "[a]ny person to manipulate or

attempt to manipulate the price of any commodity in interstate commerce, or for future delivery

on or subject to the rules of any registered entity." Sections 6(c) and 6(d) ofthe Act authorize the

Commission to serve a complaint and provide for the imposition of, among other things, civil

monetary penalties and cease and desist orders ifthe Commission has reason to believe that "any

person ... has manipulated or attempted to manipulate the market price of any commodity, in

interstate commerce or for future delivery on or subject to the rules of any registered entity ... or

otherwise is violating or has violated any ofthe provisions of[the] Act."

The following two elements are required to prove an attempted manipulation: (1) an

intent to affect the market price, and (2) an overt act in furtherance of that intent. See In re

Hohenberg Bros. Co. [1975-77 Transfer Binder] Comm. Fut. L. Rep. (CCH) 20,271 at 21,477

(CFTC Feb. 18, 1977); CFTC v. Bradley, 408 F. Supp. 2d 1214 (N.D. Okla. 2005).

3
Here, Pia entered or caused to be entered MOC buy orders during the close oftrading in

the palladium and platinum futures contracts with the intent to move higher the settlement prices

ofthe platinum and palladium futures contracts?

By this conduct, Pia violated Sections 6(c), 6(d) and 9(a)(2) ofthe Act.

IV.

FINDINGS OF VIOLATIONS

Based on the foregoing, the Commission finds that during the Relevant Period Pia

attempted to manipulate the settlement prices of palladium and platinum futures contracts traded

on the NYMEX in violation of Sections 6(c), 6(d), and 9(a)(2) ofthe Act, 7 U.S.C. §§ 9, 13b,

and 13(a)(2) (2006).

V.

OFFER OF SETTLEMENT

Pia has submitted an Offer in which he acknowledges service ofthis Order and admits the

jurisdiction ofthe Commission with respect to the matters set forth in this Order and waives: (1)

the filing and service of a complaint and notice of hearing; (2) a hearing; (3) all post-hearing

procedures; (4)judicial review by any court; (5) any and all objections to the participation by any

member of the Commission's staff in the Commission's consideration of the Offer; (6) any and

all claims that he may possess under the Equal Access to Justice Act, 5 U.S.C. § 504 (2006) and

28 U.S.C. § 2412 (2006), and/or Part 148 ofthe Regulations, 17 C.F.R. §§ 148.1, et seq. (2011),

relating to or arising from this proceeding; (7) any and all claims that he may possess under the

Small Business Regulatory Enforcement Fairness Act of 1996, Pub. L. 104-121, §§ 201-253, 110

Stat. 847, 857-68 (1996), as amended by Pub. L. No. 110-28, § 8302, 121 Stat. 112, 204-205

(2007), relating to or arising from this proceeding; and (8) any claim of double jeopardy based

upon the institution of this proceeding or the entry in this proceeding of any order imposing a

civil monetary penalty or any other relief.

Pia stipulates that the record basis on which this Order is entered consists of this Order

and the findings in this Order consented to in his Offer. Pia consents to the Commission's

issuance ofthis Order that: (1) makes findings that Pia violated Sections 6(c), 6(d), and 9(a)(2) of

the Act, 7 U.S.C. §§ 9, 13b, and 13(a)(2) (2006); (2) orders Pia to cease and desist from violating

Sections 6(c), 6(d), and 9(a)(2) ofthe Act, 7 U.S.C. §§ 9, 13b, and 13(a)(2) (2006); (3) orders Pia

to pay a civil monetary penalty in the amount of One Million Dollars ($1,000,000), plus postjudgment interest within ten (10) days ofthe entry of this Order; (4) imposes permanent trading

restrictions on Pia as set forth below; and (5) orders Pia to comply with the undertakings

consented to in the Offer and set forth below in Section VI ofthis Order.

2 In re DiPlacido, [2007-2009 Transfer Binder] Comm. Fut. L. Rep. (CCH) 30,970 at 62,484

(CFTC Nov. 5, 2008) ("[S]ettlement prices are market prices that can be manipulated."), aff'd,

sub nom. CFI'C v. DiPlacido, 364 Fed. Appx. 657 (2d Cir. 2009), cert. denied, 130 S. Ct. 1883

(2010).

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Upon consideration, the Commission has detennined to accept Respondent's Offer.

VI.

Accordingly, IT IS HEREBY ORDERED THAT:

1. Pia shall cease and desist from violating Sections 6(c), 6(d), and 9(a)(2) of the

Act, as amended by the Food, Conservation, and Energy Act of2008, Pub. L. No.

110-246, Title XIII (the CFTC Reauthorization Act of 2008 ("CRA")), §§ 13101-

13204, 122 Stat. 1651 (enacted June 18, 2008) and the Dodd-Frank Wall Street

Refonn and Consumer Protection Act of 2010 ("Dodd-Frank Act"), Pub. L. No.

111-203, Title VII (the Wall Street Transparency and Accountability Act of

2010), §§ 701-774, 124 Stat. 1376 (enacted July 21, 2010), to be codified at 7

U.S.C. §§ 9, 13b, and 13(a)(2) (2006).

2. Pia shall pay a civil monetary penalty in the amount of One Million Dollars

($1,000,000), plus post-judgment interest, within ten (10) days of the date of the

entry ofthis Order. Ifthis civil monetary penalty is not paid within ten (10) days

of the date of the entry of this Order, then post-judgment interest shall accrue

commencing on the date of entry ofthis Order and shall be detennined by using

the Treasury Bill rate prevailing on the date of entry ofthis Order pursuant to 28

U.S.C. § 1961. Pia shall pay his civil monetary penalty by making electronic

funds transfer, U.S. postal money order, certified check, bank cashier's check, or

bank money order. If payment is to be made by other than electronic funds

transfer, the payment shall be made payable to the Commodity Futures Trading

Commission and sent to the address below:

Commodity Futures Trading Commission

Division ofEnforcement

ATTN: Linda Zurhorst - AMZ-341

DOTIFAAIMMAC

6500 S. MacArthur Blvd.

Oklahoma City, OK 73169

Telephone 405-954-5644

Ifpayment by electronic transfer is chosen, Pia shall contact Linda Zurhorst or her

successor at the above address to receive payment instructions and shall fully

comply with those instructions. Pia shall accompany payment ofthe penalty with

a cover letter that identifies Pia and the name and docket number of this

proceeding. Pia shall simultaneously submit a copy of the cover letter and the

fonn of payment to: (1) the Director, Division of Enforcement, Commodity

Futures Trading Commission, at the following address: 1155 21st Street, N.W.,

Washington, D.C. 20581; and (2) the Chief, Office of Cooperative Enforcement,

Division of Enforcement, Commodity Futures Trading Commission, at the same

address. In accordance with Section 6(e)(2) of the Act, as amended, 7 U.S.C. §

9a(2) (2006), ifthis amount is not paid in full within fifteen (15) days ofthe due

date, Pia shall be prohibited automatically from the privileges of all registered

5
entities, and, if registered with the Commission, such registration shall be

suspended automatically until he has shown to the satisfaction ofthe Commission

that payment ofthe full amount ofthe penalty with interest thereon to the date of

the payment has been made.

3. Pia shall be permanently banned from:

a. trading any palladium and platinum products on or subject to the rules ofa

registered entity, as registered entity is defined in Section 1a ofthe Act, as

amended by the CRA and the Dodd-Frank Act, to be codified at 7 U.S.C.

§ la, including but not limited to palladium and platinum futures

contracts, options on palladium and platinum futures contracts, or any

platinum or palladium product regulated by the Commission; and

b. trading on or subject to the rules of a registered entity, as registered entity

is defined in Section la ofthe Act, as amended by the CRA and the DoddFrank Act, to be codified at 7 U.S.C. § la, from the beginning of the

closing period for trading until the end of the closing period for any

product regulated by the Commission, including, but not limited to,

futures contracts, options on futures contracts, foreign currency, or swaps.

The trading bans and restrictions set forth above shall be effective on the date of

this Order with the exception ofthose palladium and platinum products subject to

the Commission's jurisdiction pursuant to the Dodd-Frank Act, in which case

such trading bans with respect to those products shall be effective as ofJuly 16,

2011.

All registered entities are directed to refuse such privileges consistent with the

trading prohibitions imposed above until further notice ofthe Commission.

4. Pia shall comply with the following undertakings:

a. Public Statements: Pia agrees that neither he nor any of his agents or

employees under his authority or control shall take any action or make any

public statement denying, directly or indirectly, any findings or

conclusions in this Order, or creating, or tending to create, the impression

that this Order is without a factual basis; provided, however, that nothing

in this provision shall affect Respondent's: (i) testimonial obligations; or

(ii) right to take legal positions in other proceedings to which the

Commission is not a party. Pia shall undertake all steps necessary to

ensure that all of his agents and/or employees under his authority or

control understand and comply with this agreement.

b. Trading Prohibition: Pia agrees and undertakes that any entity over which

Pia shall act as a principal, as that term is defined in Regulation 3.1, 17

C.F.R. § 3.1 (2011), and have a controlling interest (hereinafter "Pia's

entities") shall never engage in:

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1. trading any palladium and platinum products on or subject to the

rules of a registered entity, as registered entity is defined in Section

la ofthe Act, as amended by the CRA and the Dodd-Frank Act, to

be codified at 7 U.S.C. § la, including but not limited to palladium

and platinum futures contracts, options on palladium and platinum

futures contracts, or any platinum or palladium product regulated

by the Commission; and

ii. trading on or subject to the rules of a registered entity, as registered

entity is defined in Section 1a ofthe Act, as amended by the CRA

and the Dodd-Frank Act, to be codified at 7 U.S.C. § la, from the

beginning of the closing period for trading until the end of the

closing period for any commodity product regulated by the

Commission, including, but not limited to, futures contracts,

options on futures contracts, foreign currency or swaps.

The trading bans and restrictions set forth above shall be effective on the

date of this Order with the exception of those products subject to the

Commission's jurisdiction pursuant to the Dodd-Frank Act, in which case

such trading bans with respect to those products shall be effective as of

July 16,2011.

All registered entities are directed to refuse such privileges consistent with

the trading prohibitions imposed above until further notice of the

Commission.

5. Pia shall also comply with the undertakings set forth below for a period offive (5)

years from the date ofthis Order. Pia agrees and undertakes that:

a. With respect to Pia's entities, Pia shall institute, update and/or strengthen

policies and procedures designed to detect, deter, discipline, and correct

potential wrongdoing and violations ofthe Act and Regulations, including

the type of violative conduct found by the Commission in this matter, and

that are reasonably designed to provide diligent supervision in accordance

with Regulation 166.3, 17 C.F.R. §166.3. Such policies and procedures

shall include but not be limited to:

i. policies and procedures regarding supervision of execution, trading

and back office personnel, and portfolio managers, including but

not limited to routine reviews of each trading desk and portfolio

manager, relating to order entry and trading practices with the

reviews and results being documented; and

ii. policies and procedures to ensure that questionable, unusual or

unlawful activity is promptly and directly reported to, and

addressed and investigated by, compliance or legal personnel; and

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111. policies and procedures requiring periodic review of electronic

communications, audio recordings and live telephonic

conversations of or relating to trading or order handling by each

portfolio manager, execution clerks and other personnel; such

review will include the opening and closing periods ofmarkets and

expiration oftrading on futures contracts.

b. With respect to Pia's entities, Pia shall either implement a system oftrade

recording to include all elements of the transactions, such as order entry

and execution time, or in his report to the Commission's Division of

Enforcement (the "Division") explain why such system is not feasible or

practicable.

c. Pia shall require that any person employed by him or Pia's entities,

including himself, communicating concerning transactions subject to the

Commission's jurisdiction, prices and/or trading strategies to use only

digital or electronic media (whether communicated by telephone,

voicemail, facsimile, instant messaging, electronic mail, mobile device, or

other digital electronic media) provided by Pia. Pia shall record and

maintain a record of all such communications for a period of at least two

(2) years, unless otherwise required to be retained for five (5) years

pursuant to Regulation 1.31, 17 C.F.R. § 1.31. Provided, however, records

of audio communications made using digital or electronic media shall be

subject to a retention period of at least six (6) months.

d. Pia shall ensure that compliance personnel for Pia's entities have

experience and knowledge of commodity futures and options trading,

regulation and compliance.

e. Pia shall attend training programs on an annual basis, addressing the

ethics, compliance and legal requirements of the Act and Regulations,

including abusive and manipulative trading practices and indicators of

such practices. Pia will create and maintain documentation that he has

fulfilled his compliance training.

f. With respect to Pia's entities, Pia shall provide mandatory training

programs, which shall be updated annually, addressing the ethics,

compliance and legal requirements of the Act and Regulations, including

abusive and manipulative trading practices and indicators of such

practices, to be given to professional staff, including all directors, officers,

managers, portfolio managers, traders, associated persons, execution desk

personnel, compliance personnel, and employees involved in any aspect of

the commodity and/or commodity derivatives businesses. Such training

programs will be provided within 120 days of the date of the employee's

start date in one of the aforementioned positions and on an annual basis.

Pia will create and maintain documentation that the required individuals

noted above have fulfilled their compliance training.

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g. Pia shall submit a report to the Division within 120 days ofthe issuance of

this Order. The report shall include the steps taken to comply and the

results of its compliance with the above undertakings, including a detailed

description of internal controls, and policies and procedures formulated

and implemented. For any new Pia entity subsequently formed, Pia shall

submit such report within 60 days offormation ofthe entity.

h. Within 60 days of entry ofthis Order, Pia shall retain, in consultation with

the Division, a monitor (the "Monitor"), at Pia's or Pia's entities' expense,

for a period of five years from the date of this Order to: 1) review Pia's

compliance with this Order; and 2) review, evaluate, and monitor Pia's

and Pia's Entities compliance policies and procedures to ensure they are

generally effective in preventing and detecting any potential act of

manipulation and attempted manipulation, including but not limited to,

"banging the close," relating to the price of any commodity as commodity

is defined in Section l(a) ofthe CEA, in interstate commerce, or for future

delivery and any violations of any Commission rule promulgated pursuant

to Sections 6(c)(1) and 6(c)(3) ofthe Act, as amended by the CRA and the

Dodd-Frank Act, to be codified at 7 U.S.C. §§ 9 and 15.

1. Subject to the express limitations set forth herein, the Monitor's authority

and duties are to be broadly construed. In order to determine Pia's

compliance with paragraph 5a-g, above, the Monitor shall, after providing

reasonable advance notice to Pia, during normal business hours:

i. inspect such documents of Pia or Pia's entities as reasonably

necessary relating to Pia's or Pia's entities trading in CFTC

regulated products; and

11. meet with and interview such employees, officers, and directors of

Pia or Pia's entities, and any other relevant persons, in each case as

is reasonably necessary, relating to Pia or Pia's entities activities in

CFTC regulated products.

1Il. The Monitor shall prepare a confidential annual report on the yearly

anniversary of the engagement that shall describe the execution of

his responsibilities required by this Order. The report shall include

the Monitor's methodology, information relied upon, and basis for

assessment. The Monitor shall make the confidential report

available to the Division, Pia, and those at Pia's entities designated

by Pia. The Monitor may extend the time period for issuance of

the annual report with prior written approval ofthe Division.

iv. The Monitor shall keep records of his or her activities. At any time

during the course ofthe engagement, should the Monitor discover

any evidence indicating that Pia or any officers, directors,

employees or agents of Pia or Pia's entities have violated

provisions of the Act or the Regulations, or have violated any

9
provision of this Order, the Monitor shall notify Pia, unless the

Monitor in his or her discretion determines that notification to the

Division as well as Pia is necessary and appropriate. Pia shall have

thirty (30) days from the date of notice from the Monitor to

provide notice to the Division ofthe alleged violation, after which

the Monitor shall report the matter directly to the Division. If a

matter is reported by the Monitor to the Division, the Monitor shall

provide the Division any and all information relating to the

evidence of alleged violations. This Paragraph shall not preclude

the Monitor from discussing other related matters directly with the

Division.

v. Pia shall cooperate fully with the Monitor and direct that any

officers, directors, employees or agents of Pia or Pia's entities

cooperate fully with the Monitor and the Monitor shall have the

authority to take such reasonable steps, in his view, as may be

necessary to be fully informed about the operations of Pia or Pia's

entities within the scope of his responsibilities as set forth in this

Order. To that end, Pia shall provide the Monitor as reasonably

necessary:

(l) access to all files, books, records, personnel, and facilities

that fall within the scope of responsibilities of the Monitor

pursuant to this Order, subject to a legitimate claim of

attorney-client privilege ("Privileged Materials");

(2) the right to interview any director, officer, employee,

agent or consultant of Pia or Pia's entities and to

participate in any meeting concerning any matter

within or relating to his duties; and

(3) the right to observe Pia or Pia's entities' business

operations that fall within the scope of responsibilities of

the Monitor pursuant to this Order, subject to a legitimate

claim of attorney-client privilege.

VI. If Pia agrees, in his sole discretion, to provide the Monitor with

access to Privileged Materials, the Monitor will agree (a) not to

assert that Pia's provision of the Privileged Materials in any way

constitutes a waiver by Pia of the attorney-client privilege and/or

the work-product doctrine and (b) to maintain the confidentiality of

the Privileged Materials and not to provide them to any third party,

except to the extent that disclosure is required by law or may be

necessary in furtherance of the Monitor's discharge of his official

duties and responsibilities.

In the event that Pia seeks to withhold from the Monitor access to

Privileged Materials, then Pia shall provide written notice to the

Division and the Monitor of his intention to withhold access to

information, documents, records, facilities and/or employees based

upon an assertion of a valid claim of attorney-client privilege or

10
application of the attorney work-product doctrine. Such notice

shall include a general description ofthe nature ofthe information,

documents, records, facilities and/or employees that are being

withheld, as well as the basis ofthe claim.

The Monitor shall take appropriate steps to maintain the

confidentiality of any information entrusted to him or her while

executing his or her duties pursuant to this Order and shall share

such information only with the Division, and individuals or entities

hired by him or her. The Monitor shall also take appropriate steps

to ensure that any consultants, entities, and/or individuals he or she

engages to assist with the duties pursuant to this Order shall

maintain the confidentiality of information obtained while

executing his or her duties.

vii. Any report made by the Monitor shall be made available

for meaningful inspection by the Division.

Vlll. Pia or Pia's entities shall be responsible for payment of

the Monitor's reasonable fees and expenses. The Monitor

must submit itemized invoices to Pia.

6. Pia shall also comply with the following undertakings as specified for a period of

five (5) years from the date ofthis Order. Pia agrees and undertakes:

a. Conditional Registration:

If Pia and/or Pia's entities become registered subsequent to the entry of

this Order, in the capacity of Commodity Trading Advisor, Commodity

Pool Operator, Introducing Broker, or Futures Commission Merchant, then

the prohibitions, undertakings and compliance measures set forth herein

shall become conditions of any such registration for a period of five years

from the date ofthis Order.

If Pia becomes registered as Associated Person ("AP") and is affiliated

with an entity to which he does not hold a controlling ownership interest,

then Pia shall not be registered as AP unless his employer is willing to

execute a Supplemental Sponsor Certification Form attached hereto.

b. Cooperation with the Commission-Access to Books and Records:

Pia shall provide the Commission staff with access to his books and

records and the books and records of his entities to enable the Commission

to monitor compliance with this Order.

Subject to any applicable privileges, Pia also agrees that he will not

undertake any act that would limit the ability of Pia or Pia's entities to

fully cooperate with the Commission.

11
Pia designates the Kramer Levin Naftalis & Frankel LLP law firm to

receive all requests for information pursuant to this undertaking. Should

Pia seek to change the designated person to receive such requests, notice

shall be given to the Division of such intention 14 days before it occurs.

Any person designated to receive such request shall be located in the

United States.

c. Certification ofCompliance

Pia shall certify annually on the anniversary of the date of this Order that

he is in compliance with all the terms of this Order. Such certification

shall be signed by Pia and submitted to the Commission under penalty of

perJury.

d. Disclosure ofthe Commission's Order

I. Pia shall distribute a copy of this Order to all current and future

employees, principals and officers and have each employee,

principal or officer sign a statement affirming that he/she has

reviewed this Order and shall ensure that all required disclosures of

the Commission's actions are made.

ii. Pia shall distribute a copy ofthis Order to all current investors of

Pia and Pia's entities.

III. Pia shall provide the following disclosure document to his current

and prospective clients and the current and prospective clients of

Pia's entities:

On , 2011, Christopher Pia ("Pia"), without admitting or denying

the findings, entered into a settlement with the U.S. Commodity Futures Trading

Commission ("CFTC") for violation of Sections 6(c), 6(d) and 9(a)(2) of the

Commodity Exchange Act (i.e., attempted manipulation) related to his trading of

the platinum and palladium futures contracts while a portfolio manager at Moore

Capital Management, LLC. Pia paid a $1,000,000 civil monetary penalty to the

CFTC related to this conduct. In addition, Pia and his entities are permanently

prohibited from trading CFTC regulated products during the closing period and

from trading CFTC regulated products in platinum and palladium pursuant to that

settlement. A complete copy of the Settlement Order is located at

http://www.cftc.gov.

7. Miscellaneous Provisions

This Order shall inure to the benefit and be binding on successors, assigns,

beneficiaries and administrators ofRespondent.

If Pia fails to comply with any of the conditions or undertakings of this Order

applicable to him, Pia shall be subject to further proceedings pursuant to Sections

12
6(c) and 6(e)(2) ofthe Act, as amended by the CRA and the Dodd-Frank Act, to

be codified at 7 U.S.C. §§ 9 and 9a(2), for violating a Commission Order.

The provisions ofthis Order shall be effective as ofthis date.

I:Jan:~ David A. Stawick

Secretary ofthe Commission

Commodity Futures Trading Commission

Dated: July 25th, 2011

13
SUPPLEMENTAL SPONSOR CERTIFICATIONSTATEMENT

Applicant: Christopher Louis Pia

The undersigned firm ("Sponsor"), which is registered with the Commodity Futures Trading

Commission ("CFTC or "Commission") and a member ofthe National Futures Association ("NFA"),

has sponsored Christopher Louis Pia ("Pia" or "Applicant") as an associated person (" APII) pursuant to

Commission regulations. Sponsor hereby undertakes to comply with the terms, conditions and

obligations with respect to Pia as set forth in the Order Instituting Proceedings Pursuant to Sections

6(c), 6(d) and 8a ofthe Commodity Exchange Act and Making Findings and Imposing Remedial

Sanctions ("Order") entered by the Commission in CFTC Docket No. 11- and this Supplemental

Sponsor Certification Statement ("SSCS") as long as Pia continuesto be an AP ofSponsor:

I. Pia shall not serve on any disciplinary committee, arbitration panel, oversight panel or

governing board ofany self-regulatory organization subject to regulation by the Commission

for such period as his registration is restricted;

2. Pia shall be strictly supervised by the branch office manager of Sponsor (or, in the case of a

Sponsor with no branch offices, a designated principal ofSponsor) who is physically

present in the office on a daily basis. The branch office manager (or a designated

principal) must review on at. least a monthly basis, and monitor generally, all transaction

slips, including office orders and office tickets, for all trading orders received by Pia. Any

registrant employing Pia is required to maintain a written record of these monthly

evaluations;

3. Any registrant employing Pia shall maintain a separate file ofall correspondence and

memoranda oftelephone calls concerning problems, complaints, disputes or claims arising from

or related to Pia's handling of any customer account;

4. The branch office manager (or a designated principal) ofany registrant employing Pia must

meet at least once a month with Pia to discuss any questions, problems, complaints, disputes

or claims ofwhich he orshe is aware arising from or related to Pia's handling ofany customer

account. The employing registrantshall maintain a written record ofthese monthly

conferences with Pia;

S. Sponsor understandsthat this SSCS will become part ofPia's AP registration file and shall be a

public document and may be made available to the following, including but not limited to, all

contract markets, self-regulatory organizations, and state and federal governmental entities,

6. Within one week ofApplicant's registration, Sponsor will obtain a copy ofthe Commission's

Order placing conditions on Applicant's registration as an associated person;

7. Sponsor understands that this SSCS will remain effective until the earlier offive years from the

date ofthe Order or such time as Pia's association with Sponsor is terminated and a

Commission Form 8-T is filed with NFA in accordance with Regulation 3.3I(c), 17 C.F.R.

§3.3I(c);

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8. Sponsor acknowledges that Sponsor's failure to fulfill its obligation to supervise Applicant

shall be deemed a violation ofRegulation 3.60,17 C.F.R §3.60, pursuant to Regulation

3.60(1), 17 C.F.R. §3.60(l).

Name ofSponsor

(type or print)

Dated:

Dated:

Stateof _

County of,

Signed and sworn to before me

this _ day of ,_

Notary Public

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Signature

Name ofSignatory

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Title ofSignatory

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