Article: For traders who spoofed market years ago, a new ruling spells trouble

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For traders who spoofed market years ago, a new ruling spells trouble

Bloomberg, 25 May 2020

US prosecutors are starting to build cases against traders suspected of manipulating markets as long as a decade ago, after an obscure legal ruling extended the statute of limitations for spoofing cases.

In October, the judge presiding over the impending trial of two former metals traders ruled that the US government can pursue charges of wire fraud as well as spoofing against the pair. The decision addressed a long-running legal debate about whether the placing of electronic market orders with the intention of cancelling them constituted a form of “false representation” and therefore fraud.

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