Is “spoofing” just bluffing, or a gray area of the law?

Source: Trading ‘Spoofer’ Must Be Stopped, Chicago Regulators Will Argue

Spoofing-1Spoofing was made a criminal offense by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.  It is a misdirection ploy that allows traders to buy futures contracts at a slightly lower price or to sell them slightly higher. It is accomplished by placing large orders as bait that are never intended to trade. When the price moves toward the baited orders, the trader cancels them and faster than the blink of an eye places new orders or bids in the opposite direction.

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