Steps to Review a Spoofing Event
FOUND IN: Order Based Manipulation
To detect spoofing, Surveyor looks for five conditions to be met. Surveyor walks you through a spoofing event in 5 steps in the plain English story panel on the left hand side of the screen.
1. Pre-Event Spread
Surveyor identifies the NBBO spread before the subject orders are entered.
2. First Order
A trader enters a single visible order on one side of the market that improves the NBBO spread or substantially increases the liquidity at the existing NBBO spread.
3. Second Order
The trader enters a second order on the opposite side of the market.
4. Favorable Print
The second order is filled.
5. Cancelled Order
The first order is cancelled. This may also occur immediately before the favorable print.