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This is called spoofing and is illegal.
by doovd 8y ago
This is called spoofing and is illegal.
- tomsthumb 8y agoFrom a place of total ignorance, why would telegraphing a particular false strategy to your competitor in order to get them to respond in a way that is profitable to you be illegal?
- smartscience 8y agoAlso, how would you ever prove it?
- 1stcity3rdcoast 8y agoBecause you’re not just telegraphing it to your competitor, you’re moving the entire market and affecting the bid/ask and price transparency for all its participants. That affects liquidity, derivatives, a lot of downstream negatives. That said, there are narrow instances where you can place less-than-real orders in a market [0]... it just has to be a market that is nearly and completely illiquid. [0] https://www.bloomberg.com/opinion/articles/2018-12-04/trying-to-buy-stuff-you-want-is-not-manipulation https://www.bloomberg.com/opinion/articles/2018-12-04/trying...
- Chris2048 8y agoNo it isn't, spoofing is feigning trading behaviour. Providing data that another company illegitimately bases their trades on isn't trading.
- doovd 8y agoYes it is. Placing orders you don't intend to be executed is spoofing. From the OP: "faked a bunch of activity"
- Chris2048 8y agoI assume they mean phone network activity, not market trading activity.
- gamblor956 8y agoSorry, should have been more specific. As I understand it, no trades were made--they just spoofed whatever activity their competitor was looking at, so it wasn't illegal (but then again, I was hearing the story second-hand).