"What is the message here from the merc? If you have enough money you can do whatever you want?" Any thoughts? [/B][/QUOTE] the message from Duffy & merc compliance can be found below 'CME Chicago Mercantile extends rally, eyeing August/two month highs at 139.74/139.75 (139.70 +2.70)'
Fake or not, stop playing with semantic and just keep to the point: it's about being on both sides of the market just for creating "impression of active market". And a guy called Lee has been charged for fraud for that: http://www.sec.gov/litigation/complaints/complr17579.htm "3. Lee executed wash sales -- the practice of simultaneously buying and selling an issuer's stock at the same price -- to create the impression of an active market in the six securities he manipulated. Lee typically engaged in a series of large volume wash sales at gradually increasing prices to create the appearance that the stock price was rising as a result of genuine market demand for the securities." 7. By knowingly or recklessly manipulating the securities of six issuers, defendant Lee, directly or indirectly, singly or in concert with others, violated, and, unless restrained and enjoined, will again violate, the antifraud provisions of the securities laws, specifically, Section 17(a) of the Securities Act of 1933 ("Securities Act") [15 U.S.C. § 77q(a)] and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. § 78j(b)], and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].
no its not. wash trading is where you hit your own bids - ie: offer 100 to sell and then buy 100 from yourself at the market and stay flat. Sitting on both sides of the spread is just as permissible as sitting on one side alone, and you can only do that with real limit orders. If someone hits the offer, they are tradeable.
"7. By knowingly or recklessly manipulating the securities of six issuers, defendant Lee, directly or INDIRECTLY, singly or IN CONCERT WITH OTHERS..."
In France it has been proved that it was the officials of the market itself that created artificial volume on bonds market during the previous stock market bubble. This was inquired by the justice department but strangely the news announced the discovery - which was just accidental ! as they were inquiring an insider affair and saw a paper mentionning the manipulation at the COB which is the French SEC ! so the COB did nothing and didn't notify the justice ! - but then nothing: the affair has just been shut down ! Oh just funny detail: this plan was named by them "MIB" like Men In Black maybe Try babelfish for translation from french http://www.latribune.fr/Archives/Archives.nsf/SearchSimple?SearchView&Query=((matif)+AND+(cob))+AND+[DateEdition]%3E01/01/1999+AND+[DateEdition]%3C09/07/2002&Count=20&SearchOrder=3&Start=1&SearchMax=250 "Le parquet de Paris ouvre une enquête préliminaire sur le plan de relance du Matif Une enquête préliminaire sur le plan de relance du marché dérivé de taux dâintérêt... Edition Papier - Paru le 28/08/00 - 612 mots [Ajouter à ma Bibliothèque] La justice se penche sur le plan de relance du Matif Edition Papier - Paru le 18/07/00 - 128 mots [Ajouter à ma Bibliothèque]"
those are live orders in an electronic market: if you can see it, you can hit it, anytime you like. to answer your question, i doubt any traders would sign a petition like that (if it even exists) for fear of being laughed at by their floor mates.
This 990 is a piker. I watch a stock where the tape painting market makers print something 50 cents or more out of whack on the open every day, just to fish for suckers. This on a stock trading < $15. And how do you know it's only one guy 'spoofing'? Maybe its 5 guys using the same mickey mouse computer program. The whole freakin street is trading with computer algo's now.
Harry, a wash trade is completely different than this. It usually involves two different accounts, is self dealing, and creates a fictious market Listen, if it is "so obvious" just cram his 1200 contracts down his throat. That should put an end to it. I know if I was fake bidding for 2000 cars and somebody dumped them all on me, I would think twice about doing it again. I dont see what the big deal is.
Those out of whack prints are created to trigger stops from their customers in my opinion. At least they used to be.