CFTC-PR-8891-24 U.S. District Court for the District of Nevada Sanctions Nevada Metals Trader for Spoofing in Gold and Silver Markets Date: Apr. 11, 2024 Date Accessed: Aug. 1, 2024 Source URL: https://www.cftc.gov/PressRoom/PressReleases/8891-24 Categories: CFTC-2404 PRECIOUS METALS FRAUD SPOOFING PDF Notes: The PDF viewer below disables the links inside the PDF file. The PDF file may be downloaded […]
Category: Spoofing
Spoofing in financial markets refers to the illicit practice where traders place orders with the intention of canceling them before execution, creating a false impression of market demand. This deceptive tactic involves placing large buy or sell orders to manipulate prices or induce other market participants to trade based on misleading information. Once these orders influence the market as desired, the spoofer swiftly cancels them, profiting from the resulting price movements. Regulators view spoofing as market manipulation, as it can distort market integrity and harm fair trading practices. To combat spoofing, exchanges and regulatory bodies employ surveillance systems and impose penalties to deter such manipulative behaviors and maintain market transparency and efficiency.