Market Manipulation

What this video covers

• The market-manipulation prohibition: wash trades (no change in beneficial ownership), matched orders (prearranged two-party trades), pegging/fixing, false information, and inducing transactions through deception
• Why exempted securities such as U.S. Treasury securities escape the specific market-manipulation prohibition but remain fully exposed to the general antifraud rule and the broker-dealer manipulative-practices prohibition
• The broker-dealer manipulative-practices prohibition as the B/D-specific complement to the general antifraud rule, reaching all securities including exempted ones
• The 10-day corporate-action notification requirement: what triggers it (record date, not ex-date), what events require it (dividends, stock splits, reverse splits, rights offerings), and why late filing is a manipulation-style violation
• The four conditions of the issuer buyback safe harbor: manner (single broker-dealer per day), timing (no opening or last 10 minutes), price (highest independent bid or last independent transaction price), and volume (25% of Average Daily Trading Volume (ADTV) over prior four calendar weeks)
• How the weekly block exception works: it waives only the volume condition, never manner, timing, or price
• Why the safe harbor is a checkbox defense, not a mandatory obligation, and what losing it means for defending against manipulation charges