SEC examines 'spoofing,' other trading practices

Reuters | December 8, 2010

Dec 8 (Reuters) - U.S. securities regulators are examining whether some trading practices such as "spoofing" could violate the law, Securities and Exchange Commission Chairman Mary Schapiro said on Wednesday.

Although SEC enforcement staff have zeroed in on such trading practices, Schapiro was careful to warn that this did not mean the agency had uncovered any wrongdoing.

"Spoofing" applies to several practices, including when a trader submits many bids and offers with no intention of carrying them out. (Reporting by Rachelle Younglai. Editing by Robert MacMillan)