The Game is Rigged: Criminal Spoofing of the Market

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Federal prosecutors have filed the first-ever indictment of an individual financial professional for manipulating markets through high-speed trading. By using a Michael Coscia used the high-tech trading platform at a commodities trading company that he runs, Michael Coscia placed and then cancelled dozens of large purchases in less than a second. The result was that he tricked the electronic marketplaces that determine the commodities prices.

Questions:
1. How much was Mr. Coscia able to pocket with this scheme over a three-month period?
2. What is the commodities market? Explain and give examples.
3. How does the article propose that a Financial Transactions Tax (FTT) would limit damage to consumers as investors? Discuss after you watch the video.

Source:

Pyke, A.(2014) This Is The First High-Frequency Trader To Be Criminally Charged With Rigging The Market. ThinkProgress.org, Oct. 3 (Retrievable online at http://thinkprogress.org/economy/2014/10/03/3575732/high-frequency-trading-criminal-charge-spoofing/)

YouTube (2014). Wall Street Tax Briefing. Public Citizen, Sep. 26 (Retrievable online at https://www.youtube.com/watch?v=BmShwQB_ajk)

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