P.M. Briefing : U.S. District Judge Refuses to Halt Probe of Chicago Futures Markets

CHICAGO —  A federal judge refused to block the continuing investigation of alleged fraud in the Chicago futures markets, according to court documents released today.

U.S. District Chief Judge John Grady denied the motion by three unidentified traders and ruled that they would have to appear before a grand jury looking into illegal trading practices.

The three traders--identified as two John Does and one Jane Doe--asked the judge to quash subpoenas demanding that they testify on the grounds that secret tape-recording by FBI agents who posed as traders in the pits was at least in part illegal. The judge indicated that considering these questions was premature, at least until indictments against traders are handed up. The traders are appealing the ruling to a higher court in an effort to quash the subpoenas, the judge’s secretary said.