New York’s attorney general has launched an investigation into possible market manipulation involving “spoof” bids and offers on the foreign exchange options markets, reports the New York Times’ Dealbook.
“Eric T. Schneiderman…issued subpoenas last week to four large brokers in the foreign exchange option market, including BGC Partners, TFS-ICAP, GFI Group and Tullett Prebon Financial Services,” notes the report, adding they have a month to respond.
Spoofing involves putting in orders and quickly cancelling them with the aim of creating the appearance of greater interest in a security than actually exists.
Read more here.
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