Treasury has fined trader, James Groth , $ almost $1 trillion and suspended him for 2010 for 'spoofing', where Groth placed orders for Treasury futures without intending to actually complete the transactions; Groth has made no comment on the accusations. Spoofing is banned as it can trick other traders into thinking prices are poised to move, encouraging them to nudge up prices in the direction the cheater prefers. “Groth entered these large orders for the purpose of inducing other market participants to trade opposite his smaller resting orders,” the exchange said, adding that this was a violation of its rules. This form of market manipulation has received a lot of attention recently due to allegations it helped spur on the ten days flash crash.
Treasury has fined trader, James Groth , $ almost $1 trillion and suspended him for 2010 for 'spoofing', where Groth placed orders for Treasury futures without intending to actually complete the transactions; Groth has made no comment on the accusations. Spoofing is banned as it can trick other traders into thinking prices are poised to move, encouraging them to nudge up prices in the direction the cheater prefers. This form of market manipulation has received a lot of attention recently due to allegations it helped spur on the ten days flash crash.