Cancel and corrects

Discussion in 'Risk Management' started by mickmak, Feb 3, 2015.

  1. mickmak

    mickmak

    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
     
    Last edited by a moderator: Feb 3, 2015