Market manipulation

[erictjie]

In the 80/90's when I work for 1 of top asia broking firms we (broking houses) used to manipulate certain shares request by our clients. I wonder if this happen in australia too.
I notice that quite a few stocks with volume under 100,000 shares can push the share over 5% 10% each day and not even $1 mil to play with. In the 80's we make a kill like that.

 

[nizar]

In the 80/90's when I work for 1 of top asia broking firms we (broking houses) used to manipulate certain shares request by our clients. I wonder if this happen in australia too.
I notice that quite a few stocks with volume under 100,000 shares can push the share over 5% 10% each day and not even $1 mil to play with. In the 80's we make a kill like that.

Still happens.

 

[greggles]

I saw this ASIC Media Release today: 18-099MR South Australian day trader sentenced for market manipulation

Here's the relevant parts:

Mr Boitcheff pleaded guilty to two charges in respect of the following conduct:

• between 3 January 2013 and 16 July 2013, carrying out 112 transactions in CFDs relating to Anteo Diagnostics Limited (ADO) shares which had the effect of creating an artificial price for trading in ADO shares on the ASX; and
• between 8 May 2013 and 7 January 2014, carrying out 4 transactions in CFDs relating to ADO and in the shares of ADO, that had the effect of creating a false or misleading appearance of active trading in ADO shares on the ASX.

Background

A CFD is an agreement between an investor and a CFD issuer which allows a trader to speculate on future price movements in a financial product, such as shares. The value of a CFD roughly corresponds to the value of the underlying financial product, in this case, shares on the ASX.

The CFD trading accounts used by Mr Boitcheff operated on a direct market access model, under which the CFD issuer hedged its exposure to a client’s trading position by causing a direct and equivalent position to be taken in the underlying security on the ASX. This hedging mechanism can result in CFD trades having an immediate impact on the underlying shares being traded on the ASX. The CFD issuer's clients are able to see the CFD positions translate to an actual buy or sell order in the underlying shares on the ASX.

I wonder how much of this actually goes on? Probably a lot I'd imagine. ASIC must only be alerted to a very small percentage of this kind of activity and act on even less. I'm sure most of it is done by large financial institutions but gets swept under the rug.

 

[Gringotts Bank]

I saw this ASIC Media Release today: 18-099MR South Australian day trader sentenced for market manipulation

Here's the relevant parts:



I wonder how much of this actually goes on? Probably a lot I'd imagine. ASIC must only be alerted to a very small percentage of this kind of activity and act on even less. I'm sure most of it is done by large financial institutions but gets swept under the rug.

Wow, fairly harsh penalty. I wonder if they're as strict with the big players.

As an aside, when a mechanic quotes me 3x the price as another mechanic for the exact same work, telling me it's all legit and fair pricing, isn't that manipulation for financial gain?

 

[CanOz]

Wow, moving the market with cfds....who would have thought!

 

[Wysiwyg]

The above image illustrates instantaneous cancellation of buy orders and an addition of sell orders of a significant amount. This was followed by the price drop. Based on what we observed in zoom in, it is likely that those orders belong to the same trader.

Professionals admitting it happens. No law against pulling buy orders and scaring the pants off smaller traders. Large orders used to encourage traders to front run is another obvious method.

 

[Gringotts Bank]

Market depth seems much thinner than ever before (outside top 20 ASX). Makes reversion trading near impossible because whenever price dips there's no sellers. I have changed to breakout trading ASX. Even that is hard because you have to wait for a liquid stock to form the right pattern.

 

[Joe Blow]

Finfluencer sentenced to two and a half years imprisonment for market manipulation after pleading guilty to a total of 42 charges.

Finfluencer sentenced to 2 and a half years for market manipulation

A finfluencer has been sentenced to two and a half years imprisonment after pleading guilty to a total of 42 charges. Gabriel Govinda, known online as ‘Fibonarchery’, has been sentenced to impr

www.ifa.com.au

 

[Boggo]

And yet GS and State Street constantly influence the price of stocks with both positive and negative news at the appropriate times to satisfy their buying and shorting activities.

The significant stocks in the lithium sector are prime examples of this.

I guess those fish are too big for the toothless ones so they go after a forum poster instead.

 

[divs4ever]

Finfluencer sentenced to two and a half years imprisonment for market manipulation after pleading guilty to a total of 42 charges.

Finfluencer sentenced to 2 and a half years for market manipulation

A finfluencer has been sentenced to two and a half years imprisonment after pleading guilty to a total of 42 charges. Gabriel Govinda, known online as ‘Fibonarchery’, has been sentenced to impr

www.ifa.com.au

WOW ! only ONE person ?

the only two times i looked at HC , i was perspiring from the boiler room atmosphere within the first minute

and have seen 'rampers ' working other forums as well , also overlooked were the peculiar order moves on Singtel when it was listed on the ASX .

not to mention some epic activity on CTP and Cudeco in times gone past

 

[Boggo]

WOW ! only ONE person ?

An indication of the ability of the ASIC seat warmers perhaps ?

When I was changing brokers years ago I got a little message that someone had noticed activity that may have contravened some quoted rule.
I was tidying up the remaining few stocks by selling on one platform and buying the same on another.
They went away when I explained what I was doing.

It's ok apparently for GS to put out a negative report on the price of lithium and then start buying lithium stocks the next day !

 

[Telamelo]

On the topic of manipulation...
(I sat in shock/disbelief as I watched following 60mins episode below so very sad/upsetting indeed)

 

[farmerge]

On the topic of manipulation...
(I sat in shock/disbelief as I watched following 60mins episode below so very sad/upsetting indeed)

No sympathy from me when I watched this episode of 39 minutes.

 

[qldfrog]

No sympathy from me when I watched this episode of 39 minutes.

Nope sympathy for the man either, good on him to come clean...as for the customers ..so a widow is forced to work because a 40k investment is worthless instead of what she though 1.5m....
40k invested before the last crash in an average return will not keep you out of working for long in Sydney....
If you can not manage and preserve your money yourself, you probably do not deserve it..as always been my view in similar circumstances.
Am I heartless?

 

[divs4ever]

Nope sympathy for the man either, good on him to come clean...as for the customers ..so a widow is forced to work because a 40k investment is worthless instead of what she though 1.5m....
40k invested before the last crash in an average return will not keep you out of working for long in Sydney....
If you can not manage and preserve your money yourself, you probably do not deserve it..as always been my view in similar circumstances.
Am I heartless?

this is an example of why i try to urge novices to be fiscally educated BEFORE parting with any cash ( even before hiring a financial adviser so they know what questions to ask , and help define their own goals early )

that must have been one heck of a sales pitch to sell a mine in North Korea , when China can be difficult enough .( mines in Australia can be tricky enough for some small players )

 

[Gringotts Bank]

"Cramer described activities used by hedge fund managers to manipulate stock prices - some of debatable legality and others illegal. He described how he could push stocks higher or lower with as little as $5 million in capital when he was running his hedge fund. Cramer said, "A lot of times when I was short at my hedge fund...When I was positioned short-meaning I needed it down-I would create a level of activity beforehand that could drive the futures." He also encouraged hedge funds to engage in this type of activity because it is "a very quick way to make money"."

How The Big Players Manipulate The Stock Market

I have always wondered if the big stock traders were able to manipulate the stock market and how they did it.

seekingalpha.com