"In July, Michael Corsica was sentenced to a three-year prison term in the US District Court in Chicago after being convicted of criminal spoofing. Corsica, owner of New Jersey based Panther Energy Trading, is the first person convicted under the spoofing stature, which was part of Dodd-Frank." -Modern Trader https://www.fca.org.uk/publication/final-notices/coscia.pdf http://www.cftc.gov/PressRoom/PressReleases/pr6649-13
And in case anyone hasn't heard about it yet - the "other side" here (or atleast the most vocal of them) was none other than our most benevolent Citadel - headed by famed art collector, multi-billionaire, and protector of the poor, Ken Griffin. That my friends is why this guy is in jail rather than fined and banned.
Totally agree, but can someone come up with the specific Dodd-Frank statute in question here ? I've always been a huge critic of this onerous piece of legislation which has essentially slowed our economy to a crawl.
Front running Citadel beats opponent spoofer Corsica. Front runners are the parasites of fund managers, and spoofers are the parasites of front runners. Front runners win again. After all, they make the most money and can buy influence in Washington DC.
Shame he got busted. I made good money off Corsica. His orders were so obvious. Same time every day in same markets. If people want to put fake orders in the market let them. They have to wear the loss when they are hit. And the only people they fool are high frequency front running algos. If someone comes into crude oil and puts 1000 lots on the bid over 4 prices moves the market up 4 ticks then pulls them and moves the markets down 4 ticks over and over at the same time each day and you can't make money off that. Give up. It's about as easy as trading gets.
Citadel is corralling not only the experts but people of influence as well, they want to be the new Goldman...
The problem with spoofing is not that there is something inherently wrong with it. Or at least it is a debatable issue - some have even argued that it is helpful to the markets: https://www.bloomberg.com/view/articles/2015-01-23/high-frequency-trading-spoofers-and-front-running. The problem is that it violates the rules. When one violates the rules, they will be punished if caught, particularly if such a violation takes profits from a powerful interest - simple as it is.