|Suzanne Barlyn; Emmanuel Olaoye; Tom Polansek; Reuters|
Last week FINRA brought market manipulation case jointly with financial exchanges run by
FINRA's recent investigations are a response to the
Ketchum's comments come as critics such as influential author
FINRA is concerned about algorithms designed to trigger illegal, manipulative market behaviors such as "spoofing," when orders are rapidly placed and canceled to create the illusion of market demand. Unsuspecting traders are then tricked into buying or selling at artificial prices, only to later find that the orders were canceled.
A large percentage of the improper market activity represents orders firms handle as agents for their clients, not necessarily market activities by the firms themselves, Ketchum said.
FINRA's investigations have already led to some recent enforcement actions, such as the
FINRA expects to announce more enforcement cases during the coming year, Ketchum said.
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