SEC Charges 18 Traders in $31 Million Stock Manipulation Scheme

[bears21]

This is the good old strategy of spoofing and odd lots to get people out of the way so they can walk it up or down. Then they get the indications of interest from a dark pool and print the size order. Funny thing is you cant participate in this strategy to get the size because its off exchange. Alot of the time there is hidden liquidity and these big prints will go right though. Back in the old days early 2000s this was all done on the lit markets before dark pools. They would walk these illiquid stocks up or down and then brut island arca would just keep following as they walked them up. They get it high enough blast a sell order on the algos that follow them and boom cancel all the orders. Wash rinse and repeat.

 

[guru]

Opening hundreds of accounts under other people’s name an operating them is illegal on many fronts. They also seem to be layering and creating false markets which is also illegal. They gamed the system, got greedy and got caught.

They kinda got caught but not sure who “won”. The crooks already made lots of money, are safe in China, while SEC is busy and stretched thin chasing after such crooks all over the world. And it’s possible that exchanges in other countries are being gamed too, also chasing after crooks all over the world. Probably can’t catch all of them either.

 

[maxinger]

I used to do the same, I used to run a screener then import end of day data into a database I wrote copy / paste page by damn page and look for volume increases and 21ema crosses and big movers and other things.

Full time job day trading stocks mind, too much prep work.

right. far too much work in day trading stocks.

that's why I only do full time day trading futures .

 

[Turveyd]

right. far too much work in day trading stocks.

that's why I only do full time day trading futures .

Part Time Index's via Spot, trade 5mins later out walk away if needs be, stocks ended up watching full time back then WAP phone get text quotes.

Less margin, not having to be so accurate on entry all the time helped though.

 

[Sig]

This is not manipulation, but obviously SEC thinks so. They are literally found the hole of other market makers/HFT, and make a profit on it. They are really market microstructure pros. If they can beat the algorithm, and the algorithm cannot detect the loop, it is the algorithms fail. Hmm, looks like they are the Robinhood, make MM/HFT life harder.

What they did is the US legal definition of manipulation. Since it's the SECs job to enforce US law in US markets, that's what they did. You may have your own personal definition of manipulation, which is nice and all, but of no relevance here or anywhere but a philosophy discussion.