Beware of this behaviour

TraDaToR

TraDaToR

Hello,

If you are tired of the bot constantly improving your best bid/ask on CME illiquid markets, don't try to drive it past fair value to finally hit the order from the opposite side. It 's punished now( see attached ). It's the first time I read a sanction on this, perhaps I am late and it has been a while.
 

Attachments

I don't know what order spoofing is, but this is slightly different from regular spoofing. Spoofing is a size game in a populated order book. This is more a cat and mouse chase in illiquid markets. It is something you almost naturally do in an empty book, and when you realize the other order has gone too far, it is tempting to take the other side. It is more in my grey area, but I choose not to do it because I don't need it and I feel it is actually manipulative if I click. Spoofing is well sanctioned since at least 2010 on the exchange, CFTC and dpt of justice level. Nowadays only chinese prop traders are so dumb to do it. They get caught, receive an hefty fine and are permanently barred from trading on Globex. If you read CME disciplinary sanctions, it feels like it's half of them.LOL
 
I don't know if that still applies. IMO there is still some "subtle" spoofing going on, but the blatant spoofer who puts 10x his size behind the market to force execution of the small order on the other side is gone or performed by idiots who really don't know what risk/reward is.
 
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