The Bank of Russia has identified a number of unfair transactions that were made under a preliminary agreement, which led to significant deviations in exchange parameters. They are recognized as facts of market manipulation, the press service of the regulator said in a statement.
In applications for such transactions, the parameters of the price and volume of the financial asset coincide, applications are placed with a minimum time difference and from the same IP addresses.
The Central Bank has identified the main schemes and cases of unfair behavior "by agreement", namely, the transfer of assets to a pre—known person in the main trading mode; trading activity without economic meaning, when as a result of agreements one party incurs a loss, and the second receives a profit; increasing the value of the investment portfolio over a certain period to win the investor competition; training trading, during which transactions on low-liquid instruments are performed with a predetermined counterparty; testing of various services and trading strategies (including algorithmic ones) with a previously known counterparty.
Such actions may be recognized as market manipulation in accordance with current legislation. When establishing such facts, by the decision of the regulator, exchange operations may be limited (trading accounts blocked), and the investor is held accountable, the Central Bank emphasizes.
