The agency started assessing whether the practice violated "existing rules against fraudulent or other improper behavior" or caused a disadvantage through distorted stock prices.
Due to its potential effect on the 2010 Flash Crash, quote stuffing has been debated by financial researchers, industry advocates and media outlets, including in Fox Business, Wall Street Journal, CBS Money Watch, RISK, and The New York Times.
[11][8][12][13][14] Some have noted that the release of the Michael Lewis book Flash Boys: A Wall Street Revolt has helped to initiate the debate on high-frequency trading, including the tactics of spoofing, layering and quote stuffing.
[16][17] In September 2010, Business Insider reported that Trillium Capital had received a $1 million fine by the Financial Industry Regulatory Authority for trading strategies that were considered quote stuffing and market manipulation.
[20] Quote stuffing is often described as a deliberate tactic to gain an unfair advantage over slower participants by flooding the market with large quantities of non-bona fide orders.