Glossary
Layering (Market abuse)
In market abuse, layering is a form of spoofing in which several orders are placed at different price levels on one side of the book to create an impression of depth, then cancelled after a trade on the other side. It differs from layering as a money-laundering stage.
Why it matters for brokers and payment firms
Detection looks at order-to-trade and cancellation ratios per client and at the timing between cancelled layers and opposite-side fills.