Lawyers Call for Clarity in Wake of US Spoofing Conviction
After the first-ever spoofing conviction in the United States, financial industry practitioners and securities lawyers are calling for more clarity on when it's illegal to place orders and then cancel them. Michael Coscia, the founder of New Jersey-based Panther Energy trading was found guilty of six counts of spoofing and six counts of commodities fraud. It was the first conviction of its type under the anti=spoofing provision of the 2010 Dodd-Frank Act.
"According to the court documents, the only 'victims' of Coscia's spoofing were other high frequency traders who were taken for relatively trivial amounts of money," said Securities Litigation attorney Mitchell Herr. "No mom and pop retail investors were taken in by Coscia’s spoofing. It can legitimately be asked whether substantial prosecutorial resources should be devoted to protecting one set of highly sophisticated traders from other highly sophisticated traders."
READ: Lawyers Call for Clarity in Wake of US Spoofing Conviction (subscription may be required)