[blancheneige]

>but takes it down when you reach the door

like I said, your market order will be executed before the alleged spoofer can take his down, i.e. there is no way for him to react and cancel his limit order causally, unless you are yourself doing something fishy prior to that market order. so no, the analogy doesn't hold. it really is an insignificant thing outside of HFT which is speculation to the max anyway.

[goatinaboat]

there is no way for him to react and cancel his limit order

Yes there is http://barclaysdfslastlooksettlement.com/

[erik_seaberg]

As I understand it, institutions are fleeing to dark pools because they can't trust the regular markets to stand behind the offered prices and actually execute orders.