Accused U.K. flash-crash trader loses extradition fight, will appear in Chicago for trial
Elise Fleischaker
Becky Yerak Reporter, Chicago Tribune   Accused "flash crash" trader Navinder Singh Sarao lost his latest round to fight extradition and will be sent from the U.K. to Chicago to face federal charges that he helped trigger a 2010 tumble in stock markets. A U.K. judge on Friday refused Sarao's application to appeal his extradition, a court spokesman said. A grand jury in Chicago indicted Sarao in 2015, alleging manipulation on the Chicago Mercantile Exchange. The charges against Sarao include wire fraud,
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Trading Firms Beware: Those That House Spoofers Can Be Held Strictly Liable
Elise Fleischaker
In US tort law there is a rigid legal doctrine known as 'strict liability' which is frequently used by consumers to hold manufacturers of defective products legally responsible for any harm caused by their products.  Consumers who bought and used the product and were injured are able to file suit against the manufacturer and seek damages without having to prove that the manufacturer had reckless, negligent, or bad faith intent in producing the product (hence, the rigidity of the doctrine).
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CFTC, Oystacher Said to Be in Spoofing Case Settlement Talks
Elise Fleischaker
As reported on Bloomberg by Matthew Leising and Janan Hanna The U.S. Commodity Futures Trading Commission is trying to settle its market-manipulation case against Igor Oystacher and his Chicago firm 3Red Trading LLC. Lawyers on Tuesday persuaded U.S. District Judge Amy St. Eve to allow two more weeks for those discussions, according to the people familiar with the matter who asked not to be named because they weren’t authorized to speak publicly. No agreement has been reached and the talks could still break
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Thompson Coburn: Was that trader really ‘spoofing’? Focus on the words, not the regulator claims
Elise Fleischaker
Kent Knickmeyer, Richard Reibman published and article worth reading taking a look at spoofing. They specifically try to answer the following question: Can trading pursuant to an algorithmic program properly be found to constitute “spoofing” in violation of CEA Section 4c(a)(5)(C): What constitutes “the intent to cancel the bid or offer before execution”? They focus specifically on understanding "The intent to cancel." Read the full article on JDSupra Business Advisor.   
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ICE Canada’s Q&A on Disruptive Trading Practices
Elise Fleischaker
ICE Canada's Q&A on Disruptive Trading Practices FAQ, January 2016 Spoofing: Question 1. page 2. Momentum Ignition: Question 12, page 4.
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Dodd-Frank Section 747 prohibiting Spoofing
Elise Fleischaker
Section 747 of the Dodd-Frank Act amends section 4c(a) of the CEA  (``Prohibited Transactions'') to add a new section entitled ``Disruptive Practices.'' New CEA section 4c(a)(5) makes it unlawful for any person to engage in any trading, practice, or conduct on or subject to the rules of a registered entity that--(A) violates bids or offers; (B) demonstrates intentional or reckless disregard for the orderly execution of transactions during the closing period; or (C) is, is of the character of, or is commonly known to the trade
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Spoofing Similarity Model
Elise Fleischaker
The Spoofing similarity model identifies various forms of market abuse that involve false or misleading order activity known as spoofing. “Criminal laws are rarely struck down on grounds of vagueness; vagueness is recognized to be necessary to make criminal laws effective.” CFTC argument in the matter of: Panther Energy Trading LLC and Michael J. Coscia Spoofing is a crime, but the word “spoofing” in a criminal context is relatively new. It did not appear in the first cases brought by
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COMEX Suspends Non-Member Trader For Spoofing
Elise Fleischaker
On August 22, 2016, CME Group’s Market Regulation Department (“Market Regulation”), through its Chief Regulatory Officer, summarily denied Andrey Sakharov (“Sakharov”) direct and indirect access to all CME Group markets by any member or member firm and any non-member firm introducing business to a member firm, including the CME Globex electronic trading platform (“Globex”), any other electronic trading or clearing platform owned or controlled by CME Group, and all trading floors owned or controlled by CME Group. The summary access
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DV Trading Selects Neurensic for Compliance and Surveillance Requirements
Elise Fleischaker
CHICAGO, August 15, 2016 -- Neurensic, a fintech artificial intelligence (AI) startup, today announced that its CORE™ product has been selected by DV Trading for its market surveillance and compliance capabilities. DV Trading is a Chicago-based principal trading firm with approximately 250 employees that has traded derivatives and securities for the past 10 years. “We are excited to further bridge the gap between professional trading and compliance, as the technology that powers sophisticated trading has long outclassed legacy compliance technology,”
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First Federal Spoofing Prosecution
Elise Fleischaker
Trader Sentenced in Case Involving Manipulation of Market Prices It’s often referred to as “spoofing”—but it’s definitely no joke. Using computer algorithms or other means to manipulate commodity market prices in order to line your own pockets is a federal crime, a provision of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. And last month in a Chicago courtroom, a trader—after being convicted in the first-ever federal prosecution for spoofing under the 2010 law—was sentenced to federal prison.
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