Beware of this behaviour

TraDaToR said:
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
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I don't know how the CME would act but in the UK the FCA needs a report from someone else to start the investigation as per this article:

https://www.hfw.com/insights/spoofing-what-it-is-and-our-top-5-tips-for-prevention/

So nobody is really doing anything until there is a report.
Notice the very first sentence of the article.

"Spoofing is a type of disruptive trading behaviour that can occur frequently in the commodities markets"

It would be interesting to see if the CME needs also someone to report a suspicious behaviour or they have something automatic in place to prevent order spoofing (which I doubt)
 
I am pretty sure I read spoofing disciplinary notices with individual members involved. By the way, I am a NYMEX member and one time I had to explain what I was doing with my orders to my clearing FCM before he decided to report me or not( He thought I was kinda spoofing but he couldn't see with his software I was using icebergs ). I also know an other member who had to respond to CME allegations on an other type of manipulative behaviour( He wasn't guilty at all ). So no, members are not safe anymore...
 
spoofing is what built america!

big corporate who runs the country isn't going to let it's golden boys of spoofing get on the radar.

peasants who need a hundred dollars will be the examples.

man you should know how it works.

yes members get disciplined rarely - but traders of big corp accounts are bulletproof.
 
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MarkBrown said:
so petty

o_O
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Hello MarkBrown,

I have a question for you please.

So traders can not enter Ask Sell or Buy Bid orders, and cancel the orders at will in order to gain a better price because limit order not filled?

I do not understand why the trader was punish?
 
SimpleMeLike said:
Hello MarkBrown,

I have a question for you please.

So traders can not enter Ask Sell or Buy Bid orders, and cancel the orders at will in order to gain a better price because limit order not filled?

I do not understand why the trader was punish?
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YOU KNOW WHAT HAPPENS EVERY DAY TO RETAIL TRADERS....LOL





Spoofing the market refers to a form of market manipulation where a trader places a large number of orders with the intention of creating a false impression of demand or supply, only to cancel them before execution. This deceptive practice aims to trick other market participants into buying or selling securities based on the false appearance of market interest.

Here’s how spoofing typically works:

  1. Placing Fake Orders: A trader places large buy or sell orders on one side of the market to create the illusion of strong demand or supply. These orders are not meant to be executed but are used to manipulate the market price.

  2. Influencing Market Behavior: The visible large orders can influence the behavior of other traders, leading them to believe there is a genuine interest in buying or selling. As a result, these traders might adjust their own orders, buying or selling based on this perceived demand or supply.

  3. Canceling the Fake Orders: Once the market has moved in the desired direction and other traders have acted on the false signals, the spoofer cancels the large orders. The trader may then take advantage of the manipulated price by executing smaller, opposite orders (e.g., selling at a higher price after spoofing buy orders).
Key Points About Spoofing:

  • Market Manipulation: Spoofing is illegal and considered a form of market manipulation under financial regulations in many countries, including the United States.
  • Detection: Market regulators and exchanges have systems in place to detect spoofing activities by monitoring order placement and cancellation patterns.
  • Legal Consequences: Traders found guilty of spoofing can face significant fines, penalties, and bans from trading, as well as potential criminal charges.
Impact of Spoofing:

  • Market Integrity: Spoofing undermines market integrity by creating artificial price movements, which can harm investors who make trading decisions based on misleading information.
  • Volatility: It can increase market volatility, leading to sudden price swings and reduced market stability.
  • Trust: Persistent spoofing practices can erode trust among market participants, making investors wary of market prices and transparency.
In summary, spoofing the market is a deceptive tactic used to manipulate prices for personal gain, negatively affecting market fairness and investor confidence.
 
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