The return of Paul Rotter ? :-)

Discussion in 'Trading' started by CALLumbus, Jun 7, 2018.

  1. RedDuke

    RedDuke

    Would be great if you can elaborate.
     
    #11     Jun 7, 2018
  2. bone

    bone

    There are several technical reasons, most of which pertain to the exchange's order matching algorithm and the Dodd-Frank legislation in the United States.

    It's also my own personal viewpoint that if order 'spoofing' on Eurex were allowed to flourish like it did during Rotter's heyday - it would almost certainly prompt a regulatory review of the CFTC's "No Action" letter on Eurex. And Eurex isn't about to jeopardize US access to it's exchange. Spoofing is illegal in the United States. (Dodd-Frank was enacted a bit after Rotter made his hay) And Eurex does have offices in the United States and Eurex maintains ECN infrastructure in the United States. Eurexchange and Eurex Clearing also meet on US soil and they run a considerable amount of money through the US banking system - they’re by definition under US jurisdiction. Ask FIFA how that works !

    In the past four years or so CFTC has been incredibly aggressive pursuing spoofers and making criminal referrals - there’s been at least a dozen cases prosecuted or settled. Spoofers (including several banks and a few hedge funds) have been fined, they’ve been banned, they’ve been jailed.

    Too bad the Obama Administration wasn’t evenly as remotely concerned with the criminal Wall Street bankers and the ratings agencies that brought on the 2008 financial crisis !
     
    Last edited: Jun 7, 2018
    #12     Jun 7, 2018
    CSEtrader and CALLumbus like this.
  3. #13     Jun 8, 2018