CFTC v. Hunter and FERC v. Hunter
Analysis Group was retained by Kobre & Kim to work on behalf of Brian Hunter, the lead trader of Amaranth Advisors, LLC (Amaranth), in proceedings of the US Federal Energy Regulatory Commission (FERC) and related litigation by the US Commodities Futures Trading Commission (CFTC) involving claims of attempted manipulation and manipulation of the NYMEX natural gas futures contract price. An Analysis Group team including Vice President Andrea Okie and Manager Ludmila Rovba supported affiliate Michael J. Quinn in preparing trial testimony, during deposition, and in developing a series of expert reports.
Over the course of this multi-year engagement, Dr. Quinn provided affirmative reports, rebuttal reports, and trial testimony in which he examined the effects of trades by Brian Hunter on the market to determine whether there was any evidence of market manipulation. His analyses included consideration of Amaranth's positions and trading activity, as well as contract liquidity, spreads, and volatility. He also compared Amaranth's trading practices to those of other active traders.
The FERC matter was resolved in favor of the defendant on appeal. The CFTC matter was resolved via settlement.