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Our Work

Spoofing and other illegal trading activities

Bates White has been retained on several matters related to spoofing and other illegal trading activities. In those cases, Bates White worked for regulators that wanted to investigate potentially disruptive trading activities on different exchanges. We analyzed trading activities, including simultaneous trading on Futures and Spots markets, to characterize and identify different trading patterns. We matched those trading patterns to allegations made in those cases. We developed a methodology to identify trades that were not bona fide orders with the intent to trade. We also developed a model to quantify the potential impact those trades had on the price of the underlying security. These cases helped regulators reach settlements with the various parties.

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