Securities Law Daily provides daily coverage of developments in the regulation of federal, state, and international securities and futures trading, with objective coverage of the...
Oct. 30 — The Securities and Exchange Commission will bring more cases against traders for spoofing, agency Enforcement Director Andrew Ceresney said Oct. 30, as part of a wide discussion of enforcement matters during a Practising Law Institute panel in New York.
The agency settled a $1 million spoofing case with small-scale proprietary trading shop Briargate LLC in October, and “we've got more coming down the pipe,” Ceresney said.
The SEC also has “no trend toward charging compliance offers” in its enforcement regime, he said. “We view them as partners in preventing misconduct.”
Spoofing is the practice of placing then canceling large orders, without intending to execute them, in order to move markets and then trade on the movement.
Large market-makers frequently cancel orders to keep up with market prices, but those cancellations are generally done in good faith, and market makers intend for their resubmitted orders to be executed.
Spoofing liability requires proof that the canceling party never intended to fulfill the orders and was just trying to move prices.
“The best evidence of intent are e-mails coming out of the mouths of traders themselves,” Ceresney said.
Ceresney also pushed back on claims that companies' chief compliance officers are at risk of facing an SEC action just for doing their jobs.
“We view them as partners in preventing misconduct,” he said about CCOs.
SEC Chairman Mary Jo White said the agency isn't “targeting” CCOs, after then-Commissioner Daniel Gallagher in June warned the agency to “tread carefully” in the area.
“Some people have said this is a trend, and I don’t think that’s the case,” Ceresney said. “We’re not intending to bring cases against CCOs and we think very carefully about that.”
To contact the reporter on this story: Rob Tricchinelli in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)