With only two spoofing cases having gone to criminal trial so far in the US, Rahman Ravelli’s Joshua Ray wrote an article that analysed the Department of Justice’s (DOJ) approach to such cases.
The Commodity Exchange Act defines "spoofing" as “bidding or offering with the intent to cancel the bid or offer before execution’’ - meaning it is illegal for traders to enter orders onto securities exchanges that they do not actually want to be filled.
In his piece, which was published by Law 360, Josh considers the DOJ’s tactic of presenting high-frequency traders as the defendants' intended victims – a move he believes is designed to engage with the trial jury.
The full article featured on Law360 and can be read here. (Subscription Required)