In our special report about spoofing, "Chicago Trading Community Faces Off In Spoofing Fight," the team at John Lothian News digs into one of the most controversial trading infractions since futures trading moved out of the trading pits. We started by inviting some traders, lawyers and software experts to discuss their views of current trends in anti-spoofing regulation. Then we looked at a couple of the major criminal cases, whose hallmarks were either brazenness or sheer volumes. Attorney Renato Mariotti, who as a government attorney successfully led the first criminal spoofing prosecution, contributed an essay that contains well-considered advice for firms and their traders in this era of aggressive enforcement.
We also present several video interviews, one with Renato Mariotti and one from product manager Jay Biondo from Trading Technologies, who talks about some of the tools trading firms use to make sure their traders are hewing to their guidelines. Finally, former CME Chairman Jack Sandner discusses on camera common floor trading practices in light of today’s concerns about spoofing.
We end our report with a discussion about how traders should react -- well, don’t spoof! -- and how regulators might make it easier for the industry to understand and comply with anti-spoofing rules.
