Ex-UBS Trader Accused of Spoofing Robots Fights Charges of Fraud
- One-time precious-metals-futures trader Andre Flotron on trial
- ‘Victims, who used algorithms, got ripped off,’ U.S. says
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In science fiction, the machines are usually out to get the people. In the case of former UBS Group AG trader Andre Flotron, it’s the other way around.
His technique was to fool high-speed computer algorithms operating in gold and silver futures into raising or lowering their price using a practice known as "spoofing," or placing fake orders and quickly canceling them, U.S. prosecutor Avi Perry said in opening arguments at Flotron’s trial. The conspiracy was alleged to have taken place from July 2008 to November 2013.