Away Account Spoofing
As part of its Cross-Market Report Cards program, FINRA has recently been inquiring about trading patterns where a broker’s client does not place a spoofing order, but appears to benefit from what may be a spoofing order entered through another broker. These patterns generally involve symbols with wide spreads, a temporary contraction of the NBBO spread, and an execution at the temporarily improved NBBO price.
Surveyor has developed a new filter to detect this pattern. We are calling it the “Away Account Spoofing” filter. You can see how it works here.
If you would like to know how to review a spoofing event in Surveyor, click here.
A recent enforcement action involving multi-broker spoofing is discussed here:
Traders Charged in Multi-Broker Spoofing Scheme
Further Analysis on Layering and Spoofing
Articles from Trillium experts analyzing and exploring spoofing:
Traders Charged in Multi-Broker Spoofing Scheme
Reviewing Igor Oystacher’s 111 contract orders in Surveyor
Flash Crash Spoofer questions, more questions, and some possible answers
The CFTC’s spoofing case against Igor Oystacher
A tale of two spoofers and the good news for HFT
Leading Layering and Spoofing Enforcement Actions
SEC v Joseph Taub and Elazar Shmalo