Wash trading

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).

See also

• Beneficial owner
• Conduct risk
• FMSB
• Front-running
• Layering
• Market abuse
• Market corners
• Ramping
• Spoofing
• Squeeze