Work

Spoofing in US futures markets: an interdisciplinary approach

Year: 2025

Type: article

Abstract: Spoofing is a manipulative practice that can severely harm the functioning of markets. Economically, the characteristics and impact of spoofing on markets are scarcely studied. Legally, the spoofing statute is broad and complex. This article delineates all aspects of spoofing from both an economic and legal perspective by providing a comprehensive overview of spoofing types, legislation, literature, rulings, and a conceptual framework of spoofing dimensions and attributes. This framework is used to analyse 204 US spoofing cases in futures markets and highlights the nuances of spoofing. Although the empirical focus of this article is on US futures markets, the conceptual framework is generic to other markets, trading mechanisms, and jurisdictions, and it can be adapted to include other market-manipulation types.

Source: Capital Markets Law Journal

DOI: 10.1093/cmlj/kmaf012

Authors: Marjolein E Verhulst, Joost M E Pennings

Institutions: Wageningen University & Research, University of Illinois Urbana-Champaign, Maastricht University

Language: English

Topic: Securities Regulation and Market Practices

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $4,533