This Startup Wants to Use Artificial Intelligence to Stop Trading Fraud and ‘Spoofing’

(via Neurensic) In November, 53-year-old futures trader Michael Coscia was found guilty on 12 counts of fraud and “spoofing” after he successfully manipulated prices on the Chicago Mercantile Exchange. In 2011 Coscia flooded the market with large orders for future contracts–which he never intended to execute–using his trading firm Panther Energy Trading. That moved prices “for a few thousandths of a second,” the Chicago Tribune reported, allowing a computer algorithm to illegally profit on smaller trades. Using the spoofing tactics, Coscia made $1.4 million in 9 weeks on the CME. In what the Tribune called a landmark case, Coscia’s conviction was the first test of the 2010 Dodd Frank anti-spoofing legislation and a big win for the US government as it proved that the new law was actually enforceable. Now, to give businesses and organizations more…


Link to Full Article: This Startup Wants to Use Artificial Intelligence to Stop Trading Fraud and ‘Spoofing’