Article: The Government’s New Strategy to Crack Down on ‘Spoofing’

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The Government’s New Strategy to Crack Down on ‘Spoofing’

Peter J. Henning

New York Times, 4 September 2018

The Justice Department has tried to crack down on traders who try to move markets by entering and quickly canceling orders, conduct that goes by the catchy moniker “spoofing.”

But the government’s early prosecution of the crime has faced a big setback. In just the second trial for spoofing, which the Dodd-Frank Act outlawed, a Connecticut jury acquitted a former trader at UBS of spoofing this spring. That raised questions about whether prosecutors can pursue these cases.

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Article: Former Deutsche Bank trader banned for ‘spoofing’

Article - Media

Former Deutsche Bank trader banned for ‘spoofing’

Dave Michaels

MarketWatch, 2 June 2017

A former futures trader at Deutsche Bank AG was permanently barred from the industry after admitting he conspired to manipulate the price of gold and silver futures contracts.

David Liew, a trader who was based in Singapore, also pleaded guilty in federal criminal court in Illinois on Thursday to using illegal spoofing techniques from 2009 to 2012. Regulators and prosecutors have cracked down on spoofing, which involves sending fake offers intended to push prices in a direction that benefits the trader’s other orders. Congress made it illegal through the 2010 Dodd Frank financial overhaul law.

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