2 New Cases Showcase CFTC Spoofing Theories

By Katherine Cooper and Elizabeth Lan Davis (September 25, 2018, 3:31 PM EDT) -- This past week has seen two novel developments in the spoofing theories of the U.S. Commodity Futures Trading Commission. The first involves alleging that orders placed on a foreign market that were immediately canceled after the fill of an order on a U.S. exchange (and vice versa) constitute violations of the Commodity Exchange Act and CFTC regulations. The second involves allegations that a trader's mere flashing of large orders — posting and then quickly canceling orders — without placing a genuine order on the opposite side of the market violates the CEA's anti-disruptive trading provisions....

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