Swift Guilty Verdict in Spoofing Trial May Fuel New Prosecutions in U.S.
- Commodities trader is first convicted under spoofing law
- Prosecutors already seek extradition in Flash Crash case
How 'Spoofing' Might Have Crashed the Market
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The lightning fast guilty verdict against a high-speed commodities trader may embolden prosecutors who have gone on the offensive in a year of heightened regulatory scrutiny of spoofing.
Michael Coscia’s trial was the first use of an anti-spoofing law after the 2010 Dodd-Frank Act made it illegal to manipulate prices by placing orders without intending to trade on them. That law, which also provided an easier standard of proof to try cases, was put to the test in Chicago federal court amid stepped-up civil enforcement by the Commodity Futures Trading Commission.