A New York-based trader settled charges with the CFTC that he engaged in "spoofing" practices in relation to futures contracts traded on the New York Mercantile Exchange and the Commodity Exchange, Inc.
In the Order, the CFTC determined that Simon Posen employed a spoofing strategy in which he would place large orders on one side of the market, followed by the entry of smaller orders on the opposite side of the market, and then would cancel the larger orders as soon as the smaller orders were filled. Mr. Posen then would repeat this spoofing pattern immediately in reverse in order to exit the positions that he created. According to the CFTC, Mr. Posen employed this spoofing strategy for thousands of trades in crude oil, gold, silver and copper contracts.
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