Economy

Eugene

(61,974 posts) Wed Jul 13, 2016, 02:15 PM Jul 2016

U.S. high-speed trader sentenced to three years in jail for spoofing, fraud

Source: Reuters

World | Wed Jul 13, 2016 12:22pm EDT

U.S. high-speed trader sentenced to three years in jail for spoofing, fraud

A U.S. judge sentenced high-speed futures trader Michael Coscia to 3 years in prison on Wednesday, a lighter punishment than prosecutors had wanted for the first person criminally convicted of the manipulative trading practice of spoofing.

Coscia also was sentenced to three years of supervised release.

Prosecutors had asked the judge to jail Coscia, owner of New Jersey-based Panther Energy Trading, for as long as seven years and three months after he was convicted last year of spoofing and commodities fraud.

(Reporting by Michael Hirtzer. Writing by Tom Polansek.)

http://www.reuters.com/article/us-court-spoofing-sentence-idUSKCN0ZT232

________________________________________________________________________

Previously from Reuters:

US high-frequency trader convicted in first US 'spoofing' case

Reuters
Wednesday 4 November 2015 08.16 GMT

[font size=1]-snip-[/font]

Coscia was accused of entering large orders into futures markets in 2011 that he never intended to execute. His goal, prosecutors said, was to lure other traders to markets by creating an illusion of demand so that he could make money on smaller trades, a practice known as spoofing.

[font size=1]-snip-[/font]

8 replies

= new reply since forum marked as read

Highlight:

U.S. high-speed trader sentenced to three years in jail for spoofing, fraud (Original Post) Eugene Jul 2016 OP

This is why we so desperately need a per transaction tax Warpy Jul 2016 #1

Bingo. Else You Are Mad Jul 2016 #2

Liquidity goes down metroins Jul 2016 #4

He received three years of supervised release?! Else You Are Mad Jul 2016 #3

after 3 years in prison WhiteTara Jul 2016 #5

Oh, I missed that. Else You Are Mad Jul 2016 #6

Now we have the High Speed Traders Wellstone ruled Jul 2016 #7

Link to the DoJ PR nitpicker Jul 2016 #8

Warpy

(111,462 posts)

1. This is why we so desperately need a per transaction tax

Reply to Eugene (Original post)

Wed Jul 13, 2016, 02:23 PM

Jul 2016

Take the profit out of that 0.1 point they add or subtract from most trades out there, kill HFC off completely and most of the hedge funds with it.

Hedge funds make their money by skimming. That means they're taking money from everybody in the market at one time or another. It's too little to be noticed by individual traders but it adds up quickly. Oh, boy, does it add up.

Else You Are Mad

(3,040 posts)

2. Bingo.

Reply to Warpy (Reply #1)

Wed Jul 13, 2016, 02:26 PM

Jul 2016

metroins

(2,550 posts)

4. Liquidity goes down

Reply to Warpy (Reply #1)

Wed Jul 13, 2016, 02:34 PM

Jul 2016

HFT created liquidity in the market, allowing orders to be filled instantly.

Remove HFT, your orders will likely fill at different prices and not what you wanted.