The United States Supreme Court declined to hear an appeal by Michael Coscia, the first individual convicted of spoofing under an amendment to applicable law adopted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. In February, Mr. Coscia requested the US Supreme Court overturn his conviction. (Click here for details in the article “First Trader Criminally Convicted for Spoofing Requests Supreme Court Overturn Decision, Claims Applicable Statute Is Unconstitutionally Vague” in the February 11, 2018 edition of Bridging the Week.)

Separately, Rostin Behnam, a Commissioner of the Commodity Futures Trading Commission noted that spoofing “can be challenging to prove” because it requires evidence demonstrating a defendant’s intent to cancel a bid or offer prior to execution. He said this is the case because many orders may not be filled or be cancelled for “legitimate reasons.” As a result, “a pattern alone may not evince misconduct.” He suggested this contrasts with a finding that a registrant failed to supervise, which does not require intent. For this offense, the Commission need only show that a registrant’s supervisory system was “generally inadequate” or the registrant failed to “perform its supervisory duties diligently.”