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US high-frequency trader convicted in first US 'spoofing' case
Source: Reuters
US high-frequency trader convicted in first US 'spoofing' case
Reuters
Wednesday 4 November 2015 08.16 GMT
A jury has convicted a high-frequency trader of commodities fraud and “spoofing”, in the US government’s first criminal prosecution of the banned trading practice.
The verdict in the trial of Michael Coscia, owner of New Jersey-based Panther Energy Trading, may prompt prosecutors to pursue market manipulation cases and spur some high-speed traders to review their strategies, in which orders are sometimes executed or canceled within milliseconds after they are entered.
“This is the clarity that people have been looking for – what exactly is spoofing, what defines it,” said Trace Schmeltz, a lawyer specialising in white-collar crime at the US-based law firm Barnes & Thornburg, who was not involved in the case.
Coscia was accused of entering large orders into futures markets in 2011 that he never intended to execute. His goal, prosecutors said, was to lure other traders to markets by creating an illusion of demand so that he could make money on smaller trades, a practice known as spoofing.
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Reuters
Wednesday 4 November 2015 08.16 GMT
A jury has convicted a high-frequency trader of commodities fraud and “spoofing”, in the US government’s first criminal prosecution of the banned trading practice.
The verdict in the trial of Michael Coscia, owner of New Jersey-based Panther Energy Trading, may prompt prosecutors to pursue market manipulation cases and spur some high-speed traders to review their strategies, in which orders are sometimes executed or canceled within milliseconds after they are entered.
“This is the clarity that people have been looking for – what exactly is spoofing, what defines it,” said Trace Schmeltz, a lawyer specialising in white-collar crime at the US-based law firm Barnes & Thornburg, who was not involved in the case.
Coscia was accused of entering large orders into futures markets in 2011 that he never intended to execute. His goal, prosecutors said, was to lure other traders to markets by creating an illusion of demand so that he could make money on smaller trades, a practice known as spoofing.
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Read more: http://www.theguardian.com/us-news/2015/nov/04/us-high-frequency-trader-convicted-first-spoofing-case-michael-coscia