Use of Trading Schemes

What this video covers

• How a wash sale involves no change in beneficial ownership, while a matched order involves substantially the same size, time, and price with knowledge of the other side
• Why the purpose clause matters, and how creating a false or misleading appearance of active trading makes the conduct manipulative
• Why government securities are excluded from this particular false-appearance provision
• When an unintentional self-trade is generally bona fide, and when a pattern or practice involving related algorithms or trading desks creates a compliance problem
• How Type 1 disruptive quoting uses displayed orders, contraside orders, and cancellations, including why sequence, venues, and facilitation do not necessarily change the result
• What the National Best Bid and Offer (NBBO) means, and how Type 2 activity artificially narrows the spread through frequent trading patterns
• How to separate the pump statement routes from the dump trading route, including the need for consideration, a series of transactions, and manipulative intent