Because, if nothing else, this column is an information service, this will be brief and to the point – and, hopefully, informative. Are you wondering why we are seeing so many spoofing cases in the US?
If you are then you’re probably thinking that the activity is out of control over there – and it has to be said that some of the activity being sanctioned or for which people are currently being charged, took place well after cases were brought against other high-profile spoofers like Navinder Sarao and Michael Coscia. You would think people would have paid heed to the fines and jail sentences being doled out wouldn’t you?
The fact that people clearly weren’t paying attention, signifies either they are completely unaware that people are being fined and sent to jail – in which case (shameless plug) they need to subscribe to a news service like this – or they simply don’t care because they think it won’t happen to them.
If it is the latter then it has to be said the wheel is still spinning but the hamster fell off a long time ago because that is plain dumb. Just as these people can programme software to conduct spoofing, so too can the oversight function of markets use the same technology to spot them!
To come back to the basic premise of this column, however, I would start by pointing you in the direction of this In the FICC of It podcast with Matt Kulkin of US law firm Steptoe, where he explained how the calendar can dictate the CFTC’s agenda.
So yes, there are a lot of cases being settled and charges brought right now, but it probably has more to do with the impending US election and possible change of administration (the end of the financial year should not be overlooked either) than it does a surge in illegal activity by the traders of the world.
And the moral of this story? Listen to In the FICC of It – it might keep you out of jail…