U.S. regulators are investigating whether
high-frequency traders are routinely distorting stock and futures markets by
illegally acting as buyer and seller in the same transactions, people familiar with the probes told WSJ.
Such transactions, known as wash trades, are banned by U.S.
law because they can feed false information into the market and be used to
manipulate prices. Intentionally taking both sides of a trade can minimize
financial risk for the trading firm while potentially creating a false
impression of higher volume in the market…..
Read all about it at http://online.wsj.com/article/SB10001424127887323639604578366491497070204.html
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