CFTC spoofing crackdown poses compliance challenges

First conviction underscores concerns over "hard to define" crime

courtroom
Lawyers say the CFTC's definition of spoofing is vague

It's not often that someone accused of wrongdoing in the commodities markets goes to prison – especially for a crime that didn't exist just five years ago.

But that's the likely fate of Michael Coscia, the owner of Panther Energy Trading, a New Jersey-based proprietary trading firm, after a landmark court decision on November 3. Following a high-profile trial, a Chicago jury convicted Coscia of six counts of commodities fraud and six counts of 'spoofing' – a new type of crime, which only became