Who's Spoofing Whom?

Abstract

Many opinions have been expressed by market participants in the weeks since a Chicago jury found Michael Coscia guilty of “spoofing” on November 3. This was the first criminal case on spoofing, and the first to be tried under the expanded definition of disruptive futures market trading practices in the Dodd-Frank Wall Street Reform and Customer Protection Act. Dodd-Frank defines spoofing as “bidding or offering with the intent to cancel the bid or offer before execution.” Also see in the farmdoc daily article on May 6, 2015 for a detailed illustration of how spoofing works.