Commodity Firms Tighten Up on Spoofing

With increased high-frequency trading in commodities markets likely to increase instances of “spoofing,” the CFTC has said it will be monitoring markets more avidly for instances of spoofing and other forms of market manipulation. Selwyn Parker reports on the industry’s efforts to better police itself and minimize market manipulation.

Since then, lawyers and suppliers of software to detect instances of spoofing for commodities market participants, have seen a surge of inquiries about how to detect and mitigate actions that might violate the CFTC’s rules. CFTC acting chairman Christopher Giancarlo has now laid out a new agenda, in which rules are set to be simplified, following a wholesale organizational review. Deterring spoofing and other issues of market manipulation are among the key mandates. At the International Fut