Spoofing becoming illegal

TraDaToR said:
Just a quick question for those of you who make their bread and butter scalping for a few ticks in the mainstream markets.

What have you witnessed real-time since the hunt has started? Have order books become cleaner? Did a lot of spoofers quit?
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To be honest they are still there, but less profitable. I put this down to a number of reasons, the smallest one being authorities stopping them.
Traders have learned to not fall for their tricks.
So many retail traders think people are out to "get them" to be honest retail traders hardly appear on professional traders radar, spoofers mainly take money off front running algos. You can see when a spoofer goes into a new market they just print money for the first hour or two until the front running algos switch off. Needless to say these front running algos had been jumping in from of large bids or offers which make them cannon fodder for a spoofer.

I've known a few friends get fines/suspensions for spoofing on tiny size. Yet see big algo funds spoofing regularly. I hate to be a whiner as im pretty pragmatic about how the world works but its definitely one rule for the big guys.

Anyway, I'd say overall spoofing has dropped off purely because it is a fairly primitive strategy and most guys that have been around the block a few times dont fall for it like they did 5-6 years ago.
 
Such BS. If a guy wants to put in 900 lots he doesn't want to get filled on good luck to him. He wears the loss if he gets collected and the market spikes against him. And if you're that much of a bad trader that u buy or sell just because there is a large order you want to front run then you're no better than them anyway.
 
The best they could come up with was how the broker's self-trade prevention removed his older order when he changed his mind and went the other way? Weak.
 
tommo said:
Such BS. If a guy wants to put in 900 lots he doesn't want to get filled on good luck to him. He wears the loss if he gets collected and the market spikes against him. And if you're that much of a bad trader that u buy or sell just because there is a large order you want to front run then you're no better than them anyway.
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Agree. If the trader can actually put a 900 lot into his order book, then his clearing firm's Risk Manager must be fine with it. So he should be able to wear them just fine.

My experience has been that size actually attracts size.
 
I think exchanges see fines as a major source of revenue now.
Not to mention other non volume based revenue incentives. Apparently CME data fees going up to $340 a month next yeah. No competition at all.

Sorry getting a bit off topic but just seems to be more and more legislative competition (hitting market participants) rather than market based competition that would force the exchanges to up their game
 
tommo said:
I think exchanges see fines as a major source of revenue now.
Not to mention other non volume based revenue incentives. Apparently CME data fees going up to $340 a month next yeah. No competition at all.

Sorry getting a bit off topic but just seems to be more and more legislative competition (hitting market participants) rather than market based competition that would force the exchanges to up their game
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Well, you have senior lawmakers on both sides of the aisle with long standing ties to the CME. Which means that CME will be given a chance to clean things up for themselves before the CFTC steps in. I personally think it's a bit of a red herring to draw attention away from the HF electronic firm registered membership.
 
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