Thursday, August 18, 2011

8/18/2011 - Broker Suspended After Spoofing Spotted


Broker Suspended After Spoofing Spotted

By Tom Steinert-Threlkeld
The Financial Industry Regulatory Authority said it suspended an Illinois broker for 16 months for manipulating trades using spoofing and other tactics.

Robert T. Bunda, of Frankfort, Illinois, is suspended for 16 months. He also has been fined $175,000 and required to pay restitution of $171,740 for engaging in manipulative trading activity.

This included a practice called spoofing, where small limit orders are placed at prices that improve the National Best Bid or Offer (NBBO) for a security. This, the independent regulator of brokers said, allows the trader “to take advantage of the improved prices by executing larger orders at another firm that offers execution guarantees at the national best bid or offer price.

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