Agricultural Economics Department

 

Cornhusker Economics

ORCID IDs

Fabio Mattos

Date of this Version

11-4-2015

Document Type

Article

Citation

Cornhusker Economics, November 4, 2015, agecon.unl.edu/cornhuskereconomics

Comments

Copyright 2015 University of Nebraska.

Abstract

In our previous Cornhusker Economics (10/28/2015) we talked about the emergence of electronic trading in futures markets and new trading practices that came with it. In particular, we discussed spoofing and mentioned the trial in Chicago of a trader accused of "poofing" commodity futures markets. As I write this article, a "breaking news" alert, pops up on my computer screen which informs me that the trial is over and the jury has just reached a verdict. As the Financial Times reports, the trader was found guilty on 12 accounts, "Including intending to defraud other traders by flooding gold, corn, soybeans, foreign exchange and crude oil futures markets with small orders with the intent of cancelling them?(i.e. spoofing).

Share

COinS