Wash trading: Difference between revisions
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imported>Doug Williamson (Mend link.) |
imported>Doug Williamson (Add quote - source - Investopedia.) |
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''Conduct risk - financial markets'' | ''Conduct risk - financial markets''. | ||
Wash trades are a form of market abuse involving fictitious transactions used to give a false impression of price or market activity. | Wash trades are a form of market abuse involving fictitious transactions used to give a false impression of price or market activity. | ||
<span style="color:#4B0082">'''''Typical wash trade'''''</span> | :<span style="color:#4B0082">'''''Typical wash trade'''''</span> | ||
:"A typical wash trade involves a purchase and sale of securities that match in price, size and time of execution, and which involves no change in beneficial ownership or transfer of risk." | :"A typical wash trade involves a purchase and sale of securities that match in price, size and time of execution, and which involves no change in beneficial ownership or transfer of risk." | ||
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:''The Treasurer magazine, September/October 2017, p36-37 - Gerry Harvey, chief executive of the FICC Markets Standards Board (FMSB).'' | :''The Treasurer magazine, September/October 2017, p36-37 - Gerry Harvey, chief executive of the FICC Markets Standards Board (FMSB).'' | ||
:<span style="color:#4B0082">'''''Wash trading and cryptocurrencies'''''</span> | |||
:"In recent years, wash trading has infiltrated the cryptocurrency space as well. The desire to give the impression of popularity and high trading volumes is clear: there are thousands of cryptocurrency tokens available throughout the world, and most have a difficult time distinguishing themselves. But even the most popular cryptocurrencies, including Bitcoin, experience wash trading. | |||
:Cryptocurrencies are particularly vulnerable to pump-and-dump schemes, in which a combination of inflated trading volumes and strong publicity or recommendations from insiders artificially boosts a token's value, allowing certain holders to sell at a massive profit while interest is high." | |||
:''Investopedia - December 2022.'' | |||
==See also== | ==See also== | ||
* [[Beneficial owner]] | * [[Beneficial owner]] | ||
* [[Bitcoin]] | |||
* [[Conduct risk]] | * [[Conduct risk]] | ||
* [[Cryptocurrency]] | |||
* [[Fixed Income, Currencies and Commodities Markets Standards Board]] (FMSB) | * [[Fixed Income, Currencies and Commodities Markets Standards Board]] (FMSB) | ||
* [[Front-running]] | * [[Front-running]] | ||
* [[Insider]] | |||
* [[Layering]] | * [[Layering]] | ||
* [[Market abuse]] | * [[Market abuse]] | ||
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* [[Spoofing]] | * [[Spoofing]] | ||
* [[Squeeze]] | * [[Squeeze]] | ||
* [[Token]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Ethics]] | [[Category:Ethics]] | ||
Latest revision as of 02:19, 27 December 2022
Conduct risk - financial markets.
Wash trades are a form of market abuse involving fictitious transactions used to give a false impression of price or market activity.
- Typical wash trade
- "A typical wash trade involves a purchase and sale of securities that match in price, size and time of execution, and which involves no change in beneficial ownership or transfer of risk."
- The Treasurer magazine, September/October 2017, p36-37 - Gerry Harvey, chief executive of the FICC Markets Standards Board (FMSB).
- Wash trading and cryptocurrencies
- "In recent years, wash trading has infiltrated the cryptocurrency space as well. The desire to give the impression of popularity and high trading volumes is clear: there are thousands of cryptocurrency tokens available throughout the world, and most have a difficult time distinguishing themselves. But even the most popular cryptocurrencies, including Bitcoin, experience wash trading.
- Cryptocurrencies are particularly vulnerable to pump-and-dump schemes, in which a combination of inflated trading volumes and strong publicity or recommendations from insiders artificially boosts a token's value, allowing certain holders to sell at a massive profit while interest is high."
- Investopedia - December 2022.
