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Cancelling orders quickly is legal. Changing your mind quickly is legal. Placing an order with no intent to trade is illegal. HFTs do the first two, but not
by Lazare 10y ago
Cancelling orders quickly is legal. Changing your mind quickly is legal. Placing an order with no intent to trade is illegal.
HFTs do the first two, but not the third, and it's the third which is the definition of spoofing.
- gozur88 10y agoIt's one of those laws that requires some proof of intent. It's hard to imagine they'd be able to prosecute if he hadn't been stupid enough to lay out his (illegal) intentions in email. By the same token there are probably a bunch of other traders doing the same thing who are smart enough to keep mum.