[caffeine]

No, I am being specific here. I am referring to rules regarding market manipulation in lit order books of publicly traded securities and derivatives. Those rules are stupid.

I don’t think all rules are stupid, just these particular rules.

The reason I think the rules are stupid is that they don’t prevent fraud, they just prevent behaviour which is considered pretty legitimate in every other marketplace. Like, a spoofed ask price isn’t fraud - you can actually buy the price, and you will be filled.

There is no chance order spoofing will cause your life savings to disappear in a black hole. I think regulation to ensure that remains the case (ie around custody) is very important.

[__alexs]

A world in which lying is not punished is incompatible with progress.

[gruez]

It's not really lying though? When you send a spoofed order, you really are willing to buy/sell shares at whatever price you offered. It's just that you quickly retract that offer. It's not like you put in a order, someone accepts it, then you say "haha just kidding".

[__alexs]

It is what you're describing because the buyers are a bit dim and will pile in.

If you place the spoof orders knowing that and trying to create that behaviour then yes it's lying, but with extra steps.