The National Association of Securities Market Participants (NAUFOR) has developed criteria that will help identify transactions with signs of manipulation.
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The organization’s working group to combat abuses in the securities market proposed criteria to identify potentially atypical transactions. The threshold values of the criteria are established on the basis of statistical data.
The list contains recommendations for identifying transactions with signs of manipulation, including defining threshold values for the following practices:
- Artificial formation of the price of a financial instrument, which was committed by a group of persons through prior conspiracy;
- significant one-way change in value unrelated to corporate news and events;
- creation by a bidder of a false bid or demand by submitting a large bid or several small bids without the intention of executing them. We are talking about unfair Momentum ignition, Spoofing and Layering practices;
- dishonest performance of obligations by the market maker for the sake of remuneration;
- formation of false supply or demand through transactions in opposite directions through agreements or affiliated agreements (Wash-trading);
- transactions by prior agreement that lead to a significant change in the demand or supply, price or trading volume of the instruments.
The association explained that these criteria were developed to assist NAUFOR members and counter misuse of internal data and market manipulation.
Author:
Natalia Gormaleva
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
