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’ an