There is a controversial start to this week’s podcast as P&L’s managing director Colin Lambert ponders whether the US really does have an “innocent until proven guilty” ethos in its legal system, before debating whether a firm, no last look, order book can really be spoofed? He argues “intention to deal” is fairly easy to […]
Tag: intention to deal
intention to deal
I quite like reading academic papers on the FX market structure – often they state the obvious, but just as often they get the hamster back on the wheel in my head.
An interesting paper on spoofing and pinging in OTC FX markets was released recently, which does a great job of highlighting why platforms need to be on top of behaviour; how some LPs are nothing of the sort and how others’ behaviour could be confused with spoofing but shouldn’t be. The paper also provides support for my argument that Mark Johnson’s conviction should be over-turned.
I learnt a new phrase last week, “algo-baiting”, thanks to a former bond trader being fined £60,000 by the UK’s FCA for doing just such a thing. Reading the notice issued by the FCA, however, I find myself wondering why what the trader had done that was deemed illegal?
At face value it looks like an open and shut spoofing case but with spoofing there generally is not an intention to deal – in this case I would argue there could have been.