Spoofing

An illegal market manipulation tactic in which a trader places large orders they intend to cancel before execution, creating the illusion of supply or demand to move prices in their favor. The Dodd-Frank Act of 2010 explicitly outlawed spoofing, and the most high-profile case involved Navinder Sarao, a London-based trader whose spoofing in S&P 500 E-mini futures was linked to the 2010 Flash Crash. The CFTC and DOJ have since brought numerous enforcement actions, using sophisticated surveillance tools to detect spoofing patterns.