Description: A Canadian has been arrested in Florida for his alleged involvement in a high-frequency trading scheme. Allegations suggest that the Canadian trader used a plan known as layering or spoofing to impact share prices. It appears that the scheme was detected when the trader approached an employee of a bank in an attempt to recruit an additional accomplice. The bank employee was actually cooperating with enforcement officials and recorded the conversation with the trader.
Source: Globe and Mail.com
Date: January 13, 2015
1) Were you familiar with the term high-frequency trading? If so, what is your understanding of it?
2) What are some of the ethical issues raised by this story?
3) What is your opinion of the potential penalty discussed in the article? Do you believe it acts as a sufficient deterrent?