UK trader arrested for May 2010 U.S. Stock market flash crash
- Thread starter just21
- Start date
Spoofing isn’t “just another tool”. It is a clearly defined illegal activity. There are specific SEC, CFTC, and Dodd-Frank LAWS against it.
What’s more, all international regulated electronic futures and stock exchanges that are registered to operate in the United States have exchange rules that prohibit “ spoofing” and other forms of deceptive malevolent exchange order messaging. It’s important to realize that it is the Trading exchanges themselves that are referring these abuses to regulators for prosecution.
A sense of context and proportionality is important here. CME and ICE are now major publicly listed multinational corporations. Any reasonable investor would realize that a component of their valuation lies within maintaining regulatory compliance and orderly markets. If you look at the CME’s org chart, a fair bit of their staff is devoted to this enterprise.
And I quote:
“Signed into law in 2010 by President Obama, amended the Commodity Exchange Act’s (CEA) “Prohibited Transactions” section.8 This statute, 7 U.S.C.A. § 6c(a)(5)(C), reads in pertinent part that “it shall be unlawful for any person to engage in any trading, practice, or conduct on or subject to the rules of a registered entity that is of the character of, or is commonly known to the trade as, ‘spoofing’ (bidding or offering with the intent to cancel the bid or offer before execution).”9 Under 7 U.S.C.A § 13(a)(2), a knowing violation of the anti-spoofing provision is a felony, carrying a maximum sentence of 10 years’ imprisonment and a fine of the greater of $1 million or triple the violator ’s monetary gain resulting from the alleged conduct.”
What’s more, all international regulated electronic futures and stock exchanges that are registered to operate in the United States have exchange rules that prohibit “ spoofing” and other forms of deceptive malevolent exchange order messaging. It’s important to realize that it is the Trading exchanges themselves that are referring these abuses to regulators for prosecution.
A sense of context and proportionality is important here. CME and ICE are now major publicly listed multinational corporations. Any reasonable investor would realize that a component of their valuation lies within maintaining regulatory compliance and orderly markets. If you look at the CME’s org chart, a fair bit of their staff is devoted to this enterprise.
And I quote:
“Signed into law in 2010 by President Obama, amended the Commodity Exchange Act’s (CEA) “Prohibited Transactions” section.8 This statute, 7 U.S.C.A. § 6c(a)(5)(C), reads in pertinent part that “it shall be unlawful for any person to engage in any trading, practice, or conduct on or subject to the rules of a registered entity that is of the character of, or is commonly known to the trade as, ‘spoofing’ (bidding or offering with the intent to cancel the bid or offer before execution).”9 Under 7 U.S.C.A § 13(a)(2), a knowing violation of the anti-spoofing provision is a felony, carrying a maximum sentence of 10 years’ imprisonment and a fine of the greater of $1 million or triple the violator ’s monetary gain resulting from the alleged conduct.”
Here’s an ALGO designed to spoof that was indicted and ultimately enforced:
http://www.cftc.gov/idc/groups/publ...ments/legalpleading/enfpantherorder072213.pdf
A Gelbert Group prop trader is as I understand it currently facing indictment by CFTC for running an ALGO with a spoofing strategy.
Bunge, a big Ag Commercial, paid a substantial fine for spoofing the Soybean market pre-open.
http://www.cftc.gov/PressRoom/PressReleases/pr6007-11
At least three futures clearing firms have paid substantial fines for accommodating spoofing messages from clients and ignoring exchange warnings.
http://www.cftc.gov/idc/groups/publ...ments/legalpleading/enfpantherorder072213.pdf
A Gelbert Group prop trader is as I understand it currently facing indictment by CFTC for running an ALGO with a spoofing strategy.
Bunge, a big Ag Commercial, paid a substantial fine for spoofing the Soybean market pre-open.
http://www.cftc.gov/PressRoom/PressReleases/pr6007-11
At least three futures clearing firms have paid substantial fines for accommodating spoofing messages from clients and ignoring exchange warnings.
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As ‘Spoof’ Trading Persists, Regulators Clamp Down
Bluffing Tactic That Dodd-Frank Banned in 2010 Can Distort Markets
https://www.wsj.com/articles/how-spoofing-traders-dupe-markets-1424662202
Bluffing Tactic That Dodd-Frank Banned in 2010 Can Distort Markets
https://www.wsj.com/articles/how-spoofing-traders-dupe-markets-1424662202
Who knows the relationship between the two of them, perhaps Thakkar was getting a cut of the profits.
The U.K. and the U.S. froze Nav’s Bank accounts. Even the Swiss ones. And if an Indian Bank wires money to or from the U.S. they will freeze an Indian account. Been that way since 9/11. And with the huge US and U.K. Indian populations no Indian Bank is going to contemplate getting black listed just for Nav.
U.S. District Attorneys do not fuck around - especially the District of NY.
I think that was the point just21 was making, by buying bitcoins and storing them on a hard drive/memory stick the US could not freeze his bitcoins.
He was too arrogant to think he would ever get busted, didnt he tell the CME to kiss his ass?
Certainly possible, but more likely the authorities are trying to overstep rational boundaries given past behavior.