Hello all,
I would like to understand how the mechanics of cancel/corrections can be used for market manipulation or market abuse. This is a broad topic and can cover various asset classes, so any insight would helpful.
My understanding (or example I can think of) is if a client submits an order, and it is partially filled (i.e. 100 lot order in FX and partial fill of 90). Subsequently, there is a price improvement for the client. Instead of filling rest of 10, trader corrects the previous fill as a full fill of 100. Takes the price difference as profit.
Is that understanding accurate? What about other asset classes? Another other examples?
Many thanks ahead
Cheers
I would like to understand how the mechanics of cancel/corrections can be used for market manipulation or market abuse. This is a broad topic and can cover various asset classes, so any insight would helpful.
My understanding (or example I can think of) is if a client submits an order, and it is partially filled (i.e. 100 lot order in FX and partial fill of 90). Subsequently, there is a price improvement for the client. Instead of filling rest of 10, trader corrects the previous fill as a full fill of 100. Takes the price difference as profit.
Is that understanding accurate? What about other asset classes? Another other examples?
Many thanks ahead
Cheers
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