US authorities are finally coming down hard on financial wrongdoing. But the wrongdoers are not the much-criticised bankers and mortgage brokers who provoked the 2008 financial crisis. Instead, the targets of the current crackdown are spoofers.
Spoofing is a high-frequency trading (HFT) strategy in which a firm places orders only to cancel them almost immediately, creating the illusion of liquidity. This practice was banned by the Dodd-Frank Act.
Anyone who doubts the sincerity of regulators’
- People moves: SocGen adds in prime services, Deutsche fills new rates hole, HSBC makes model move, and more
- Quant Finance Master’s Guide 2019
- Credit risk quants are hitting the tech gap
- Princeton tops inaugural Risk.net quant master’s ranking
- Does credit risk need an expected shortfall-style revamp?