US derivatives regulators learned to detect and combat algorithmic spoofing in gold and silver futures markets, a practice where fake orders manipulate prices. High-profile cases from 2018 to 2025 exposed banks and traders using coded cheating strategies, prompting the Commodity Futures Trading Commission (CFTC) to develop advanced AI-driven surveillance tools. In 2024, the CFTC formed a dedicated office to proactively identify misconduct before complaints arise. However, despite these technological advances, the agency remains underfunded compared to the sophisticated trading firms it monitors, raising concerns about its ability to keep pace in this ongoing 'machine versus machine' enforcement battle.
