JPMorgan Set To Pay Nearly $1 Billion In Spoofing Penalty – Source

Spoofing is a practice in which traders place orders they intend to cancel to move prices to benefit their market positions. The Justice Department has taken aim at the practice in recent years, using sophisticated data analysis tools to spot potential wrongdoing that it could not previously detect.

Reuters has reported that around 2017, the agency began using techniques it originally developed to spot healthcare fraud schemes to identify suspicious trading patterns, including by scanning activity on exchanges.

“The idea was: let’s mine this data source to see who the worst actors are,” Robert Zink, a top Justice official who helped lead the effort, told Reuters in May. Read more https://www.reuters.com/article/us-usa-doj-trading-insight/traders-beware-u-s-taps-new-tools-to-find-fraud-in-volatile-commodities-market-idUSKBN22X14E.

The agency has already charged six JPMorgan traders for manipulating metals futures between 2008 and 2016.

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