How Spoofing Works


Source: WSJ

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  1. Romberry commented on Apr 27

    Little scams like this (plus automated high speed trading by computer looking for similar tiny margins to essentially game the system) are part of why I am a proponent of something like a 0.1 percent transaction tax on every trade.

    • DeDude commented on Apr 28

      Yep a small tax on every offer to buy or sell would fix this – heck you could even make that tax refundable if the order is actually executed.

  2. Diablo commented on Apr 27

    Its nice to see that the SEC is going after some kid in his pajamas 3000 miles away but HFT firms that do this thousands of times A SECOND day in day out are allowed to do it no questions asked.

  3. godot10 commented on Apr 27

    Sherman McCoy’s “cake crumbs” on speed.

    The HFT machines are going to make all the Sherman’s obsolete though.

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