Is spoofing just a nicer word for lying and cheating?
“‘Spoofing’ Debate: Devious Or Deft?,” Wall Street Journal, May 7, 2015 C1. Trader arrested for market manipulation connected to the flash crash. Trader asserts he’s just good at his job.
“Spoofing” is illegal, but poorly defined. May involve placing large trade orders with no intention of actually completing those orders. This allows traders to make money on small price movements on stocks.
Is the information in the market tainted when one trader says he’s going to buy big and then doesn’t? Does it matter that the trader’s intent was to mislead?
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