“There are particular automated strategies that have been identified by regulators which, if carried out, are likely to constitute market abuse,” the European Commission document says. “Further identifying abusive strategies will ensure a consistent approach in monitoring and enforcement by competent authorities.”
Among other strategies, the Brussels-based commission specifically targets:
- Layering: in which traders place large orders they have no intention of allowing to go through,
- Quote stuffing: in which investors seek an advantage by delaying data feeds, and
- Spoofing: in which market participants try to trick other computers into making decisions that can be exploited for profit.
Read the Bloomberg article here.
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