Parsing The DOJ's Flawed Spoofing Theory

Law360 (September 10, 2020, 3:25 PM EDT) -- The Commodity Exchange Act defines "spoofing" as "bidding or offering with the intent to cancel the bid or offer before execution."[1] Put into plain language, the law makes it illegal for traders to enter orders onto securities exchanges that they do not actually want to be filled.

In the only two criminal spoofing cases that have so far gone to trial, U.S. v. Coscia[2] and U.S. v. Flotron,[3] the U.S. Department of Justice presented high-frequency traders, or HFTs, as the defendants' intended victims.

In both cases, the DOJ contended that "trick" orders — i.e., orders intended to be cancelled — were...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!