Volume Derivatives?

Price manipulation

The following example doesn't really do a comparison with stock price manipulation but rather illustrates the plausibility of volume derivative price manipulation, which is obvious.

But the example is instructive if we follow it to its logical conclusion:

As a really simplified hypothetical, Blackrock and Morgan decide to reallocate on Mo,Tu... Meanwhile, they acquire "volume derivatives" and "hold" all the trade tickets until then. They do not even need to have holdings in common as volume is volume, and is not specific (in reference to the topic) to an individual issue or specific price.

Hypothetical... I do not have expertise in the prospectii, operations, and procedures of multi-100 billion dollar operators.

Ignoring the opportunity costs of delayed timing, one is left with the obvious fact that manipulation by major players like this are easily detected by the SEC.

From the SEC's page on manipulation:

Manipulation


Manipulation is intentional conduct designed to deceive investors by controlling or artificially affecting the market for a security. Manipulation can involve a number of techniques to affect the supply of, or demand for, a stock. They include: spreading false or misleading information about a company; improperly limiting the number of publicly-available shares; or rigging quotes, prices or trades to create a false or deceptive picture of the demand for a security. Those who engage in manipulation are subject to various civil and criminal sanctions.
 
Right. The SEC is on the ball.
Send the SEC an email. They'll get back to you after they close down the pornsite browser tabs.
Maybe quicker would be to ask Madoff clients.

This thread and your OP was about "volume derivatives". Myself (and only one other) responded with similar answers.
Have a nice day.
 
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