HomeWebcast“Spoofing” and Disruptive Futures Trading Practices: What Every Firm Needs to Know
Spoofing and Disruptive Futures Trading Practices CLE CLE

“Spoofing” and Disruptive Futures Trading Practices: What Every Firm Needs to Know

Live Webcast Date: Friday, November 18, 2016 from 12:00 pm to 2:00 pm (ET)
CLE Commercial/Consumer LawRecording

Spoofing and Disruptive Futures Trading Practices CLE

Join us for this Knowledge Group Spoofing and Disruptive Futures Trading Practices CLE Webinar. Under the Dodd-Frank Act, any trading practice "which violates bids or offers; or demonstrates intentional or reckless disregard for the orderly execution of transactions during the closing period," also known as spoofing, is illegal.

The year 2015 marked the U.S.' first criminal conviction of a trader for spoofing and the increase in the number of civil enforcement actions against the alleged traders. Michael Coscia, the first person to be convicted of spoofing crime, made civil case settlements amounting to a total of $2.7 million in disgorgement and $3.1 million in fines. Some other notable spoofing-related events include the cases of traders Navinder Sarao and Igor Oystacher. 

Strengthened efforts are now geared towards spoofing detection, prevention, and punishment. Regulators are expected to actively monitor the markets through sophisticated spoofing detection technology. As a matter of fact, the Financial Industry Regulatory Authority ("FINRA") will begin to rate firms on the basis of spoofing volume and other manipulative trading tolerated through their systems. This will likely lead to increased enforcement actions and prosecutions in 2016 and beyond.

It is clear: firms need high quality compliance systems and individuals well-versed with the new regulatory backdrop to keep them out of spoofing trouble. Spoofing compliance systems help prevent spoofing risks and could help in mitigating any fine, should a firm be a target of regulatory scrutiny.

In this two-hour Webcast, a panel of distinguished professionals and thought leaders will help traders and firms understand the fundamental aspects of "Spoofing" and Disruptive Futures Trading Practices. They will provide an in-depth discussion of this significant topic and will also offer best practices in developing and implementing an effective spoofing compliance system.

Key topics include:

  • "Spoofing" and Disruptive Futures Trading Practices – An Overview
  • Notable Cases
  • Current Enforcement Trends
  • Spoofing Risks
  • Spoofing Penalties
  • Legal and Regulatory Forecasts
  • Best Practices - Spoofing Compliance Systems

Agenda

SEGMENT 1: 
Dr. Fabricio NunezSenior Associate
The Brattle Group

  • What is spoofing? [simple definition; mention one of three disruptive trading practices]
  • Brief introduction to Panther Energy case
  • Mechanics of how spoofing works (related to Panther Energy)

SEGMENT 2:
Brian L. FriedmanSenior Counsel
Proskauer

  • Enforcement trends/key cases: Coscia/Panther Energy…Sarao/Flash crash…Possibly others
  • Spoofing is not limited to automated trading; manual trading may be spoofing.
  • Discussion of Oystacher case

SEGMENT 3:
Yan CaoPrincipal
Cornerstone Research

  • The fact patterns of the alleged spoofing activity based on actual market order/trading data – examples of  Coscia/Panther and Oystacher/3Red.
  • Key economic considerations relied upon by the regulators to assess spoofing and the “intent to cancel” in recent cases.

SEGMENT 4: 
Shaun D. LedgerwoodPrincipal
The Brattle Group

  • What is a market manipulation?
  • Spoofing is a type of fraud, which can trigger a market manipulation
  • How spoofing (and other disruptive trading practices) can give rise to damages from private causes of action

Who Should Attend

  • Antitrust lawyers
  • Traders
  • Financial Institutions
  • Stock Exchange Companies
  • Marketing Officers
  • Marketing Professionals
  • Marketing/Sales Executives
  • Risk and Compliance Managers
  • Senior Counsel
  • Fraud Monitoring
  • Other Related/Interested Professionals

Spoofing and Disruptive Futures Trading Practices CLE

SEGMENT 1: 
Dr. Fabricio NunezSenior Associate
The Brattle Group

  • What is spoofing? [simple definition; mention one of three disruptive trading practices]
  • Brief introduction to Panther Energy case
  • Mechanics of how spoofing works (related to Panther Energy)

SEGMENT 2:
Brian L. FriedmanSenior Counsel
Proskauer

  • Enforcement trends/key cases: Coscia/Panther Energy…Sarao/Flash crash…Possibly others
  • Spoofing is not limited to automated trading; manual trading may be spoofing.
  • Discussion of Oystacher case

SEGMENT 3:
Yan CaoPrincipal
Cornerstone Research

  • The fact patterns of the alleged spoofing activity based on actual market order/trading data – examples of  Coscia/Panther and Oystacher/3Red.
  • Key economic considerations relied upon by the regulators to assess spoofing and the “intent to cancel” in recent cases.

SEGMENT 4: 
Shaun D. LedgerwoodPrincipal
The Brattle Group

  • What is a market manipulation?
  • Spoofing is a type of fraud, which can trigger a market manipulation
  • How spoofing (and other disruptive trading practices) can give rise to damages from private causes of action

Spoofing and Disruptive Futures Trading Practices CLE

Spoofing and Disruptive Futures Trading Practices CLE

Dr. Fabricio NunezSenior AssociateThe Brattle Group

Dr. Fabricio Nunez is a Senior Associate at The Brattle Group. He has  corporate and consulting experience in finance, valuation, and trading. He has assisted corporations and government agencies in investigations of market manipulation in commodity and financial markets. He has also consulted extensively on matters involving fixed income instruments in the U.S. and international markets. Before Brattle, he was at Cargill’s energy trading group, where he developed trading strategies in physical and financial energy products. He was also part of Cargill’s global capital markets group, where he was involved in asset liability management, interest rate, commodity and currency hedging functions.

Dr. Nunez holds a Ph.D. in Applied Economics and a Master of Public Policy from the University of Minnesota and a B.S. in Economics and Business Administration from Universidad de Chile.

Spoofing and Disruptive Futures Trading Practices CLE

Shaun D. LedgerwoodPrincipalThe Brattle Group

Shaun Ledgerwood is an economic expert in the analysis of trading and hedging strategies in energy, commodity and financial markets, and in the enforcement and litigation of market manipulation claims.  As a former economist and attorney for the Office of Enforcement for the FERC, he evaluated manipulative behavior within and across wholesale energy markets and related futures and derivatives contracts.  Dr. Ledgerwood is the author of several published articles and a book on the definition, detection and analysis of manipulative trading behavior.   He regularly presents on this topic at conferences and professional meetings.

Dr. Ledgerwood has developed an economic framework for evaluating allegedly manipulative trading and uses this to assist clients in maintaining compliance, surveillance and for prosecuting or defending against enforcement actions and related lawsuits brought under antitrust principles or the anti-manipulation rules of the CFTC, FERC, SEC, or equivalent provisions in the EU.  Dr. Ledgerwood is presently engaged as an expert in several such actions.  He has testified as an expert witness before state utility commissions and in federal court on matters involving liability, damages and valuation.  He taught graduate level classes in microeconomic theory, regulation, law and economics, antitrust, remedies and public policy for the University of Oklahoma and Georgetown University.

Spoofing and Disruptive Futures Trading Practices CLE

Yan CaoPrincipalCornerstone Research

Yan Cao specializes in finance and financial accounting. Dr. Cao has expertise assessing issues related to market efficiency, valuation, derivatives, trading behavior, and risk management in a range of complex litigation, as well as in regulatory and internal inquiries. Her experience covers matters involving securities, bankruptcy, corporate transactions, and tax controversies. She also applies financial accounting analysis to a variety of issues, including those related to financial instruments.

Dr. Cao’s case experience has covered a range of industries, spanning healthcare, pharmaceutical/biotech, real estate, telecommunications, and energy, with a particular focus on banking, insurance, broker-dealers, and other financial institutions. Dr. Cao has led large teams and worked with multiple experts in all stages of the litigation process. Her work includes substantial trial experience.

Spoofing and Disruptive Futures Trading Practices CLE

Brian L. FriedmanSenior CounselProskauer

Brian L. Friedman is a senior counsel in the Litigation Department and a member of the Financial Services Group and Securities Litigation Group.  He regularly represents clients in a variety of complex matters, including litigations, investigations and enforcement proceedings in the financial services area, contract disputes and business torts.  His practice includes matters in state and federal courts, and in domestic and international arbitrations.  A significant portion of Brian’s practice is dedicated to representing and counseling major brokerage firms, FCMs and other leading financial institutions in a wide variety of areas, including securities and commodities litigations, investigations and enforcement proceedings, arbitrations and mediations, compliance issues and regulatory controversies.  Representative matters include state and federal suits regarding short selling practices, securitization disputes, as well as multiple investigations by SEC, CFTC, FINRA and NYSE regarding electronic trading, surveillance, email retention and other issues. 

Spoofing and Disruptive Futures Trading Practices CLE

Course Level:
   Intermediate

Advance Preparation:
   Print and review course materials

Method Of Presentation:
   On-demand Webcast

Prerequisite:
   Experience in finance or trading practice

Course Code:
   145617

NASBA Field of Study:
   Business Law - Technical

NY Category of CLE Credit:
   Areas of Professional Practice

Total Credits:
    2.0 CLE

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About the Knowledge Group

The Knowledge Group

The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.

About the Knowledge Group

The Knowledge Group

The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.

The Brattle Group answers complex economic, regulatory, and financial questions for corporations, law firms, and governments around the world. Brattle is distinguished by the clarity of its insights and the credibility of its experts, which include leading international academics and industry specialists. Brattle’s clients rank among the world’s best performing and most admired public and privately held companies, law firms, and industry organizations, working for more than 80 of the AM LAW 100 and more than 100 of the Fortune Global 500. The firm also advises U.S. and international regulatory and government agencies. With nine offices and more than 300 staff around the world, Brattle provides local support and a global perspective. The firm has locations in Cambridge, New York, San Francisco, Washington, DC, Toronto, London, Madrid, Rome, and Sydney.

Website: https://www.brattle.com/

Cornerstone Research provides economic and financial consulting and expert testimony in all phases of complex litigation and regulatory proceedings. The firm works with an extensive network of prominent faculty and industry practitioners to identify the best-qualified expert for each assignment. Cornerstone Research has earned a reputation for consistent high quality and effectiveness by delivering rigorous, state-of-the-art analysis for over twenty-five years. The firm has 600 staff and offices in Boston, Chicago, London, Los Angeles, New York, San Francisco, Silicon Valley, and Washington.

Website: https://www.cornerstone.com/

Proskauer is a global law firm recognized for its excellence both in practicing law and serving clients. We are trusted advisors to many of the world’s top companies, financial institutions, investment funds, not-for-profit institutions, governmental entities and other organizations across industries and borders. With 700+ lawyers in 13 offices and approximately 50 areas of practice, we have the capabilities, experience and creativity to guide our clients through their most important legal and business challenges.

Website: https://www.proskauer.com/

Dr. Fabricio Nunez is a Senior Associate at The Brattle Group. He has  corporate and consulting experience in finance, valuation, and trading. He has assisted corporations and government agencies in investigations of market manipulation in commodity and financial markets. He has also consulted extensively on matters involving fixed income instruments in the U.S. and international markets. Before Brattle, he was at Cargill’s energy trading group, where he developed trading strategies in physical and financial energy products. He was also part of Cargill’s global capital markets group, where he was involved in asset liability management, interest rate, commodity and currency hedging functions.

Dr. Nunez holds a Ph.D. in Applied Economics and a Master of Public Policy from the University of Minnesota and a B.S. in Economics and Business Administration from Universidad de Chile.

Shaun Ledgerwood is an economic expert in the analysis of trading and hedging strategies in energy, commodity and financial markets, and in the enforcement and litigation of market manipulation claims.  As a former economist and attorney for the Office of Enforcement for the FERC, he evaluated manipulative behavior within and across wholesale energy markets and related futures and derivatives contracts.  Dr. Ledgerwood is the author of several published articles and a book on the definition, detection and analysis of manipulative trading behavior.   He regularly presents on this topic at conferences and professional meetings.

Dr. Ledgerwood has developed an economic framework for evaluating allegedly manipulative trading and uses this to assist clients in maintaining compliance, surveillance and for prosecuting or defending against enforcement actions and related lawsuits brought under antitrust principles or the anti-manipulation rules of the CFTC, FERC, SEC, or equivalent provisions in the EU.  Dr. Ledgerwood is presently engaged as an expert in several such actions.  He has testified as an expert witness before state utility commissions and in federal court on matters involving liability, damages and valuation.  He taught graduate level classes in microeconomic theory, regulation, law and economics, antitrust, remedies and public policy for the University of Oklahoma and Georgetown University.

Yan Cao specializes in finance and financial accounting. Dr. Cao has expertise assessing issues related to market efficiency, valuation, derivatives, trading behavior, and risk management in a range of complex litigation, as well as in regulatory and internal inquiries. Her experience covers matters involving securities, bankruptcy, corporate transactions, and tax controversies. She also applies financial accounting analysis to a variety of issues, including those related to financial instruments.

Dr. Cao’s case experience has covered a range of industries, spanning healthcare, pharmaceutical/biotech, real estate, telecommunications, and energy, with a particular focus on banking, insurance, broker-dealers, and other financial institutions. Dr. Cao has led large teams and worked with multiple experts in all stages of the litigation process. Her work includes substantial trial experience.

Brian L. Friedman is a senior counsel in the Litigation Department and a member of the Financial Services Group and Securities Litigation Group.  He regularly represents clients in a variety of complex matters, including litigations, investigations and enforcement proceedings in the financial services area, contract disputes and business torts.  His practice includes matters in state and federal courts, and in domestic and international arbitrations.  A significant portion of Brian’s practice is dedicated to representing and counseling major brokerage firms, FCMs and other leading financial institutions in a wide variety of areas, including securities and commodities litigations, investigations and enforcement proceedings, arbitrations and mediations, compliance issues and regulatory controversies.  Representative matters include state and federal suits regarding short selling practices, securitization disputes, as well as multiple investigations by SEC, CFTC, FINRA and NYSE regarding electronic trading, surveillance, email retention and other issues. 

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