Decoding Shadows: Case Studies in Market Abuse and Trade Monitoring

by dilip jain

Through a series of meticulously researched case studies, the book provides a real-world understanding of how these abuses occur, their impact on market integrity, and the challenges in detecting and preventing them. Written with clarity and expertise, this book is an invaluable resource for finance professionals, compliance officers, regulatory authorities, and anyone interested in understanding the complexities of market surveillance.
Key highlights
In-depth Analysis of Market Explore various forms of market abuse, including price manipulation, unlawful disclosure of inside information, and abusive algorithmic trading.
Realistic Case Engage with realistic scenarios that bring to light the complexities of market manipulation and the subtleties involved in identifying such practices.
Advanced Surveillance Uncover the sophisticated tools and techniques used in modern trade surveillance, including machine learning algorithms and anomaly detection systems.
Best Practices and Compliance Gain insights into the best practices for compliance officers, including guidelines for monitoring, internal audits, and regulatory adherence.
Chapter 1: Understanding Market Abuse
Market manipulation
1. Price Manipulation
Wash
Painting the
Pump and
2. Trading Manipulation


Front
Stop
Bid Rigging
Short Squeezes
3. Information-Based Manipulation
4. Market Mechanism Abuse
5. Algorithmic Manipulation
High-Frequency Trading (HFT)
1. Quote Stuffing
2. Rapid Order Placement and Cancellation
3. Momentum Ignition
4. Latency Arbitrage
5. Order Anticipation
6. Flash Orders
Chapter 2: Insider Dealing
Section 1: Defining Insider Dealing
Section 2: Mechanisms of Insider Dealing
Section 3: Case Studies on Insider Dealing
Case Study 1: Insider Trading in Tech
Case Study 2: Wash Trading in Cryptocurrency
Case Study 3: Spoofing in Commodity Markets
Case Study 4: Misleading Financial Announcements
Case Study 5: Front Running in Equities
Case Study 6: Market Cornering in Agriculture
Case Study 7: Algorithmic Manipulation
Case Study 8: Pump and Dump in Penny Stocks
Case Study 9: Insider Information and Social Engineering
Case Study 10: Short Squeeze in Retail Trading
Case Study 21: Misleading Financial Forecasts
Case Study 22: Covert Insider Trading Networks
Case Study 23: Manipulation in Commodity Derivatives
Case Study 24: Exploiting Market Announcements
Case Study 25: Fictitious Devices in Options Trading
Case Study 26: Coordinated Pump and Dump in Crypto
Case Study 27: Misuse of Material Nonpublic Information in Energy Sector
Case Study 28: Price Fixing in Auction Markets
Case Study 29: Exploiting Regulatory Loopholes
Case Study 30: Misrepresentation in IPOs
Case Study 31: Flash Crash Analysis
Case Study 32: Insider Trading in Retail Companies
Case Study 33: Market Manipulation via Social Media
Case Study 34: Abusive Naked Short Selling
Case Study 35: Benchmark Manipulation
Case Study 36: Misleading Non-GAAP Metrics
Case Study 37: Insider Trading in Technology Startups
Case Study 38: Manipulation in Precious Metals
Case Study 39: Exploiting Market Data Delays

Case Study 50: Misleading Debt Ratings
Case Study 51: Exploiting Market Illiquidity
Case Study 52: Manipulation in Real Estate Investment Trusts (REITs)
Case Study 53: Abusive Leveraging Strategies
Case Study 56

202 pages, Kindle Edition

Published January 12, 2024