A federal court judge in Illinois rejected Michael Coscia’s efforts to have dismissed the federal indictment against him for alleged spoofing that was filed in September 2014. Mr. Coscia, the prior manager and sole owner of Panther Energy Trading LLC, was indicted in Chicago for alleged spoofing activities involving futures traded on CME Group and ICE Futures Europe from August through October 2011. Mr. Coscia had sought to have his indictment dismissed on the grounds that the prohibition against spoofing under federal law is void for vagueness as is the commodity fraud provisions under which he also was charged. In rejecting Mr. Coscia’s arguments regarding spoofing, the court reasoned that, because First Amendment rights were not in controversy (e.g., regarding restrictions on freedom of speech or religion), “the Court must assess whether the statute is unconstitutional as applied to Coscia’s conduct, … not to the conduct of the ‘hypothetical legitimate traders’ who voiced concerns about the statute’s applicability to practices such as partial-fill and stop-loss orders.” Because the alleged illegal conduct—entering large-volume orders with the intent to “immediately cancel”—tracked the language of the relevant statute, the judge refused to dismiss the spoofing counts of Mr. Coscia’s complaint. The judge also sustained the charges against Mr. Coscia for allegedly engaging in a scheme or artifice to defraud, claiming that, as written, the indictment states that Mr. Coscia “carried out his strategy ‘to create a false impression regarding the number of contracts available in the market’ … and ‘intended to trick others into reacting to the false price information he created’.” The Commodity Futures Trading Commission, the UK Financial Conduct Authority and the Chicago Mercantile Exchange previously brought enforcement proceedings in July 2013 and entered into simultaneous settlements with Mr. Coscia and Panther related to the same conduct underlying the indictment, assessing aggregate sanctions in excess of approximately US $3 million and various trading prohibitions.