Spoofing Is a Silly Name for Serious Market Rigging: QuickTake

Spoofing is a new crime but it isn’t new. It has a silly name but it’s no joke. Spoofers trick other investors into buying or selling by entering their own buy or sell orders with no intention of filling them. Long considered disreputable but rarely dangerous, spoofing has emerged in an era of computerized trading as a threat to market legitimacy. The US Justice Department and Commodity Futures Trading Commission has nabbed day traders operating out of their bedrooms, big Wall Street banks and sophisticated high-frequency trading shops. In July, three former JPMorgan Chase & Co. employees went on trial ...