The Commodity Futures Trading Commission reportedly is examining whether high-frequency-trading firms are violating rules by using wash trades to artificially inflate volume and distort markets. Regulators reportedly also are examining CME Group and IntercontinentalExchange to determine whether their systems are sophisticated enough to prevent such trades from occurring. When wash trades occur, "it might appear to be liquidity, but it is not. It isn't really there. It's fantasy liquidity," Bart Chilton of the CFTC was to say in a speech Sunday.

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