Abstract
This paper examines recent enforcement action by the UK Financial Conduct Authority (FCA) in relation to spoofing and, in particular, the FCA's use of trading data analysis in support of its findings. Data analysis has become an increasingly important part of recent FCA market abuse enforcement actions, particularly with respect to spoofing investigations. Where other evidence of manipulative intent is absent, the FCA may seek to infer such intent from order and trading activity where there appears to be no legitimate explanation for it. But — as this paper explains — any such inference must be based on sound analysis: there must be clarity around the sample on which an observed pattern is based as well as any sampled trading which does not appear to fit the observed pattern and which might therefore point away from manipulative intent.
Published Version
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