Why Spoofing Should Not Be Deregulated and Permitted in Financial Markets: Ethical Concerns

The article examines spoofing, which is one of the most morally controversial practices in financial markets. In doing so, it undermines the arguments of market practitioners and theoreticians who call for its deregulation and permission in financial trading. In particular, it critically assesses three ethical arguments: the “argument from the interpretive nature of deception,” the “argument from the defensive function of spoofing” and the “argument from the fairer distribution of market power.” All these arguments have significant shortcomings and call into question the legitimacy of proposals to deregulate spoofing and as such are unjustified.