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Security Market Manipulation

Author

Listed:
  • Chester Spatt

    (Tepper School of Business, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213
    National Bureau of Economic Research, Cambridge, Massachusetts 02138)

Abstract

This article uses a variety of contemporary developments to address artificial market pricing and market manipulation. It examines a variety of modern trading tactics and manipulation strategies in the context of trading and order mechanics. For example, I raise the connection between so-called best execution, cancellation rates, and manipulation. I explore the connection between manipulation and short exposures as well as potential connections between Federal Reserve policies and artificial pricing. I also examine the nature of market manipulation in different facets of the trading day and the transitions among these.

Suggested Citation

  • Chester Spatt, 2014. "Security Market Manipulation," Annual Review of Financial Economics, Annual Reviews, vol. 6(1), pages 405-418, December.
    • Handle: RePEc:anr:refeco:v:6:y:2014:p:405-418
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev-financial-110613-034232
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    manipulation; trading tactics; short selling; opening/closing prices; sniping; quote stuffing;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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