Milbank LLP’s White Collar Defense and Investigations Group is pleased to announce the publication of “A Practice Guide on the Law of Spoofing in the Derivatives and Securities Markets,” a whitepaper published by Wolters Kluwer Legal and Regulatory U.S. It has been nearly ten years since the anti-spoofing provision in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act took effect. The Guide, authored by Milbank partner James Cavoli with support from associate Kayla Giampaolo and law clerk Emily Clarke, provides a detailed analysis of the statutory frameworks used to combat spoofing and a comprehensive treatment of key case law developments, spoofing enforcement actions and private litigation since Dodd-Frank.
Beginning with an executive summary on general enforcement activity, recent charging behavior by government enforcers, and key takeaways for targets of spoofing allegations and those defending them, the 10-section Guide examines key spoofing issues and developments, including:
- The nature of spoofing conduct;
- The federal government’s increased anti-spoofing enforcement efforts in recent years, accompanied by data on the number and nature of the spoofing cases that have been brought since Dodd-Frank, the dispositions of those cases, the prevalence of parallel criminal and civil enforcement actions, and the sanctions imposed;
- The various statutes that have been used to combat spoofing in the securities and derivatives markets, and key case law;
- Private lawsuits in the spoofing arena;
- Key legal issues that have arisen in spoofing cases and recurring factual questions that all practitioners should keep in mind when defending allegations or conducting an internal investigation related to spoofing; and
- A comprehensive summary of most, if not all, spoofing enforcement actions by the federal government since 2011, as well as enforcement activities by self-regulatory bodies and lawsuits filed by private plaintiffs.
Mr. Cavoli said: “Dodd-Frank explicitly defined and outlawed spoofing in relation to commodities and derivatives trading, and we have seen a drastic uptick in enforcement activity in recent years. With that has come a more developed body of case law that will inform how spoofing cases are won or lost moving forward. We are proud to have composed this practice guide which provides an unmatched analysis of all of the key issues related to spoofing and will serve as the definitive resource for navigating spoofing allegations, whether in the context of enforcement actions, internal investigations or private litigation.”
To view the full Guide, please click here.
