Reproduced from Practical Law with the permission of the publishers. For further information visit www.practicallaw.com. Certain links in the article are to Practical Law and require subscriber access[i].
Scope of this note
Recently, the US Commodities Futures Trading Commission (CFTC), the US Department of Justice (DOJ), and the UK Financial Conduct Authority (FCA) have stepped up their efforts to pursue market participants for manipulative trading behavior in the securities and commodities markets. For example, the CFTC’s Director of Enforcement, James McDonald, released a statement in January 2018 announcing the CFTC’s efforts to combat market manipulation in relation to spoofing. Similarly, in February 2019, Julia Hoggett, the FCA’s Director of Market Oversight, delivered a speech about the FCA’s commitment to tackling market abuse.
This practice note summarizes and compares US and UK law and enforcement on the topic of spoofing. Specifically, the note describes how each jurisdiction’s enforcement bodies prosecute spoofing under applicable law and provides examples of the types of trading practices that may constitute spoofing.
[i] This reproduction adopts American English. The original version was published in British English.
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