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CFTC orders Tower Research Capital to pay $67.4m in spoofing case

“Generally, after receiving a full or partial fill on the genuine orders, the traders then cancelled the spoof orders” reports financefeeds.com. As a result, the genuine orders would fill sooner, at better prices, or in larger quantities than they otherwise would.The order finds that Tower Research Capital, through three of its traders, engaged in this unlawful activity while trading futures contracts through Tower accounts, which benefited Tower financially while causing over $32.5 million in market losses.In placing the spoof orders, the traders often used an order splitter to enter several smaller, randomly-sized orders in an attempt to obscure their scheme from other market participants.The order also requires Tower to cease and desist from violating the Commodity Exchange Act’s prohibition on spoofing and the use of manipulative and deceptive schemes.
Source: financefeeds.com

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