Slide 18
Slide 18 text
“Coscia was accused of entering large orders into futures markets in 2011 that he never intended to
execute. His goal, prosecutors said, was to lure other traders to markets by creating an illusion of
demand so that he could make money on smaller trades, a practice known as spoofing. Prosecutors
said he illegally earned $1.4m (£900,000) in less than three months in 2011 through spoofing.”, The
Guardian, HFT layering, November 2015
“A unit of hedge fund Citadel LLC was fined $800,000 by U.S. regulators in June for failing to prevent
erroneous orders from being sent to several stock exchanges over a nearly three-year period”,
Reuters, HFT stuffing, 2014
“Athena is the regulator’s first market manipulation case against a firm engaged in high-frequency
trading, an industry besieged by accusations that it cheats slower investors” , Bloomberg Business,
HFT manipulations, 2014
“Navinder Singh Sarao, 36, is fighting extradition to the US where he is facing 22 charges ranging
from wire fraud to commodities manipulation, which carry sentences totalling a maximum of 380
years. Mr Sarao is alleged by US prosecutors to have made $40m over four years by spoofing the
Chicago futures market. The trader’s activities include making a $900,000 profit on May 6, 2010,
when a trading frenzy known as the flash crash saw one of the most spectacular falls ever seen in the
equity markets.” , Financial Times, 22 October 2015
MANIPULATIONS