Spoofer Complains About Spoofing, Is Ignored, Starts Spoofing, Gets Busted

In light of Blackrock’s Hillary Clinton’s sudden interest in taming high frequency trading and imposing a fee on order cancellations, something we have said is imperative ever since 2009 and now is far too late to make a difference, it is worth highlighting that just today the SEC cracked down on yet another spoofing mastermind, no not Citadel, but another “basement” trader, Eric Oscher, 47, a former NYSE specialist and his firm Briargate Trading (an anagram of Arbitrage), who were busted earlier today for making the gargantuan profit of $525,000.
While the argumentation in the complaint is by now familiar to most – someone spoofs a given stock or index, then quickl takes the other side, and cancels the spoofing order – there are three very notable items in this latest crackdown on said spoofing “mastermind.”
The first explains why in a market in which volumes are contracting at a record pace, and where liquidity is so scarce flash crashes have become a virtually daily event, exchanges continue to proliferate like weeds. The reason is because spoofers like Oscher use one exchange in which they “telegraph” their spoof orders, they use another exchange in which to take the opposite side of the trade thus leaving no readily available trail of evidence exposing their conduct.
This is how the SEC explains it:

This post was published at Zero Hedge on 10/08/2015.