Its all in the game right. Spoofers can be trapped and value traders make money from manipulators. Why more intervention?
So people are still doing what they always did and still appeared to be doing after it was made illegal? I think the only news here is that they are actually taking action.
For those who didn’t bother to read the article, the traders in question are likely going to jail, having plead guilty to criminal charges (except perhaps for the Chinese guy who probably fled the country). —- No, they made significantly less than that. Here’s another article with more details. https://www.wsj.com/articles/tower-research-to-pay-67-million-to-settle-spoofing-claims-11573155230 The traders only made $10M (and got fired). The firm paid at least $50M more than that to settle, and millions more I’m sure in legal and compliance costs. Sounds like a pretty big disincentive to me.
Consider the level of education, the drive and determination, the in depth knowledge of what drives the markets & the amount of money earned between these 2 groups of people: 1 - Successful traders 2 - People that make up rules for traders Do that - and tell me if you still need that question answered.
Flouting the rules to gain an advantage ought to be punished as someone is losing on the other hand from the manipulation. A good trader can profit in both environments but that is separate to the issue of whether the manipulators should be fined.
The article did say that 2 of the 3 traders involved will be sentenced next year. I’d love to know what that sentence will be.
Well, I would hope that at least the CME bans them for life from trading CME products, and more hopeful the judge gives them heavy jail time, so they can "Budd Foxx" it for a while, contemplating their bullshit activity. All to make a fast buck.
Amen. And the jail time would send a strong message to others that this type of crime won’t be tolerated.