>Coscia was sentenced to three years in prison for spoofing futures markets using a specially designed computer program, making an estimated $1.6m (£1.2m).
Other markets are also rife with deceptive, arguably fraudulent practices so they should be policed first? The CFTC isn't even empowered to regulate those other markets.
I’m saying it’s not really deceptive or fraudulent.
Is it fraudulent that you offer your house for sale, but when you get a few buyers willing to pay the asking price, you move the price up?
Not really. But that is WAY more manipulative than anything that is even POSSIBLE in the public markets, let alone what’s allowed. (The FX markets are an exception where this can happen on certain platforms).
I’m saying we tolerate these behaviours in every other market because they are not really fraud. It’s not lying to say you are bid and then cancel it later, so long as you honor any trades you do get.
>Effectively it means anyone cancelling an order has to worry
No, it really doesn't. This is a single enforcement action that probably took months or years to put together. The behavior being policed is traders entering thousands of orders in a short period of time and then cancelling the orders after their real orders were filled, and then repeating this behavior over some period of time. Someone who fat fingers an order occasionally, or changes their strategy in response to intraday market movements has nothing to fear.
>For me real manipulation
Yeah those people also suck and I hope they get what's coming to them, even though I know they won't.
They are not irreplaceable but it would create the sort of inverse "moral hazard" that might stop these practices, which are apparently what's being protected.
Lots of better players existed at the inception of VLC. Most existing players that worked at all were probably better. That's how most projects start off.
