Why spoofing is possible if it is not legal?

https://www.bloomberg.com/news/artic...spoofing-probe


I think it is not fair if ones spoof and get away and other go even to jail. Why it is not equal rules to everyone? Why they are catching manually which make this unequal? Trading is done on computers systems. So spooofing is placing order and cancelling it. So why trading systems do not give error when you try to cancel order by making it spoof?

Also - what is more exact spoofing definition? I know its placing order with the intention to cancel. But when it is counted as intention to cancel?

Very interesting story, on multiple levels. Thanks for posting.

A couple of points from my experience:

1. I try to monitor on EURUSD a particular signal. Usually it signals one way and on occasion it is used to accumulate an opposite position and run over the positions established based on that. Basically whatever you know that induces positions to be opened in one direction, can be used (by large players) to start a move after having accumulated a position, or to accumulate a position and then negate the signal. Of course the signal itself is given by the same participant or one like minded and positioned. IMO, a lot of what goes on in trading is a series of plays exploiting anything known that will put liquidity on one side. It takes study and a lot of effort to monitor and exploit this stuff. That is what I would call: "trading".

1. As for spoofing, I have seen it on the DOM too. The DOM on FXSSI https://fxssi.com/tools/dom-snapshots?pair=EURUSD collating retail orders and positions from multiple brokers. Large stop orders sometimes oddly disappear before price reaches them... Think what you will, but I have the impression that large players have accounts with the polled retail brokers and place and cancel orders according to their needs.

Morale of the story is: whatever it takes and anything you can do and get away with.