Agreed,but instead of fining traders, all the CME has to do is start charging for cancelled orders and/or counting the spoof orders and flag the account holder that is sending them. But they won't do it.
There are far less spoofers than there used to be. I know people that would make upwards of 30k on a good day taking money off spoofers. The market when left alone will find it own balance. Lots of people spoofing initially takes money off front runners. Eventually front runners get killed off and the survivors learn to trade markets with spoofers in. Eventually more and more people take money off spoofers so they stop spoofing as much. Evolution always weeds out the weak from the strong and things find an equilibrium. If spoofers bother ppl my advice is learn to trade them. It can be a huge edge.
Hmm I'm by no means pro spoofers. I am just anti regulators fiddling with markets. I've seen plenty of spoofers put fake orders in and get filled on them and take whopping losses. It's just a trading strategy that by no means is free money. They take the risk like the rest of us
Agree, but there was one exception to that: Nav Sarao - knocking down a purported $10 million per year....mostly spoofing. Now that's damn close to "Free Money".
Haha I actually worked for the same company as him (although at different times) and I have friends that are great friends with him. He has been made a total scapegoat. He did do some spoofing. But did plenty of other stuff. He made most of his money doing other trades. He started as a one lot trader and just built it up over the years. Nothing sinister about what he dd at all.
Well I wouldn't be so sure about that. I know he was an excellent trader without his algo. We'll see what comes out at his trial next year. It's gonna take them months just to trace the money flows and all of the trades.
re: "Regardless, I imagine you must be riveted to the screen since you get very little advance notice when to act" if you've got custom software that scans the level 2 quotes: 1) yes you can follow more than one symbol 2) no you don't have to be glued to the screen Based on criteria you set forth, it will flag the unusual spoofing activity and provide a summary of the frequency of it's occurrence....and sort by highest frequency for all symbols to show which ones are getting spoofed the most.