Three Hungarian traders and a Swiss investment firm must pay about $11.7m after a London judge said they profited from 'spoofing', the practice of placing and then cancelling orders to mislead the market.
Bloomberg News reports that Szabolcs Banya, Gyorgy Szabolcs Brad, Tamas Pornye and Mineworld, a Seychelles company they set up to trade derivatives, were ordered to pay a total of about $9.36m, Judge Richard Snowden said in a written decision. The case was filed by the U.K. Financial Conduct Authority, which has been investigating the matter as far back as 2011.
Spoofing allows traders to place multiple orders that affect a security’s price but that are never completed. The practice attracted global attention when U.S. prosecutors accused a British trader, Navinder Singh Sarao, of helping cause a $1tril “flash crash” in markets on one day in 2010.
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