U.K. market regulator FSA warns about stock spoofing (.pdf), where traders stack the order book...

|By:, SA News Editor

U.K. market regulator FSA warns about stock spoofing (.pdf), where traders stack the order book of a stock on one side, then quickly pull those orders after their true intention (an opposite trade) is executed. FSA says spoofing could trick algorithmic trading systems into thinking there was "a host of buying and selling interest that wasn't really there."