Wall Street to Get Graded on How Much Spoofing It's Facilitating
- Finra plans `report cards' on potentially manipulative trading
- Regulator's assessments are meant to root out wrongdoing
2015: The Year Spoofing Went Mainstream
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U.S. regulators have grown so concerned that traders are using high-speed computers to manipulate markets that they’re planning a new tactic to clamp down on the practice -- rating brokers on how much spoofing flows through their order books.
The Financial Industry Regulatory Authority said it plans to issue report cards this year that will grade firms on how many phony bids to buy or sell stock they might have a role in facilitating. Finra, a market cop funded by Wall Street, expects brokers to use the assessments to root out any misconduct, the regulator said Tuesday in its on exam priorities. The reports won’t be made public.