Russian c-bank to add spoofing to list of market manipulation activities
The Central Bank of Russia is expanding the list of market manipulation activities.
The regulator will treat as market manipulation all willful actions that mislead investors or create artificial activity regarding exchange-traded assets.
The central bank explains that the additions to the list include actions that markedly influence trading parameters or prevent them from changing under normal market conditions. Such an action is, for example, dissemination of information about assets and businesses, as well as executing certain trades.
In particular, one form of manipulation is to submit buy/sell bids without having the intention to execute these but to get better price or trading parameters of bids in the opposite direction (spoofing or layering). The regulator notes that encouraging such activities or calling for engaging in such activities is also a form of market manipulation.
At present, manipulative practices are enlisted in the so-called “anti-insider” law. Against the background of rapid development of modern information technologies and communications, new methods of market manipulation have emerged, and these are not covered by the laws.
The central bank is allowed to expand the list. The proposed changes will permit the regulator to warn and to act against the most complex market manipulation practices. These involve using websites, social networks and messengers.