08.09.2017

Spoofing Conviction Upheld

08.09.2017

The Seventh Circuit Court of Appeals in Chicago has upheld the conviction of former high-frequency trader Michael Coscia for manipulating the futures market via spoofing orders.

US Attorneys charged the founder and CEO of New Jersey-based Panther Energy Trading with commodities fraud and six counts of spoofing under new market regulations introduced by the Dodd-Frank Act.

According to the prosecution, Coscia commissioned algorithms to manipulate the prices of commodities like gold, soybean meal, soybean oil, high-grade copper, euro-FX and sterling-FX currency futures, The Chicago Tribune reported.

U.S. District Judge Harry Leinenweber handed down a three-years sentence to the trader on July 12, 2017, after prosecutors asked for a five-year sentence and Coscia’s lawyers requested probation.

The appeals court rejected arguments by Coscia’s lawyers that the anti-spoofing statute was unconstitutionally vague and argued that the evidence prosecutors submitted at trial was insufficient to support his conviction.

“The anti‐spoofing provision provides clear notice and does not allow for arbitrary enforcement,” U.S. Circuit Judge Kenneth Ripple wrote. “Consequently, it is not unconstitutionally vague.”

The Coscia case is “just the tip of the iceberg” in terms of the government’s increasingly active role in such prosecutions, said Renato Mariotti, the lead prosecutor on the case before recently joining a private practice, according to the Chicago Tribune.

“For years, many people scoffed at the notion that the government could explain high-frequency trading strategies to judges and juries. No one is laughing anymore,” Mariotti said in a statement after the sentencing.

Pension funds, sovereign wealth funds, endowments and other institutional asset owners are sitting on vast troves of data -- but extracting value from that data is more challenging than ever.

#AssetOwners #DataQuality

Technology costs in asset management have grown disproportionately, but McKinsey research finds the increased spending hasn’t consistently translated into higher productivity.
#AI #Fiance

We're in the FINAL WEEK for the European Women in Finance Awards nominations – don't miss your chance to spotlight the incredible women driving change in finance!
#WomenInFinance #FinanceAwards #FinanceCommunity #EuropeanFinance @WomeninFinanceM

ICYMI: @marketsmedia sat down with EDXM CEO Tony Acuña-Rohter to discuss the launch of EDXM International’s perpetual futures platform in Singapore and what it means for institutional crypto trading.
Read the full interview: https://bit.ly/45xRUWh

Load More

Related articles

  1. The proposed rule kills the goose that lays the golden egg.

  2. Regulators eye funds operated by foreign banking entities.

  3. STA/Jones Trading - Who Begets Liquidity?

    MiFID II and a proposed law could change trading dramatically.

  4. Regulation, Liquidity Top Bond-Trader Concerns

    President Trump has railed against the regulation, though repeal seems highly unlikely.

  5. SEC Tightens Clock-Sync Mandate
    Latest News

    Trade Like it's 2011

    A regulatory rollback may return trading to the levels of six years ago.

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] By continuing to use our services after Aug 25, 2025, you agree to these updates.

Close the CTA