NYMEX, COMEX Get Some Thanksgiving-Weekend Homework From CFTC

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As one can gather from the name, “spoofing” is not OK with the Commodity Futures Trading Commission, so it would like a couple of prominent exchanges it regulates to, you know, do something about it. Nothing big, but it would be nice if the New York Mercantile Exchange and Commodity Exchange at least knew whether it—it being high-frequency traders placing a whole bunch of orders they have absolutely no intention of following through with—was going on. Just sayin’.

“NYMEX and COMEX should continue to develop strategies to detect spoofing,” the CFTC said in a statement accompanying a so-called “trade practice enforcement review” late Monday.

A CME spokeswoman said the exchange operator is still reviewing the CFTC’s findings, adding that a number of the items raised by the CFTC “have already been addressed and remediated.”

CME Group’s Exchanges Pressed on Spotting ‘Spoofing’ [WSJ]

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