Price manipulation by intermediaries

Serkan Imişiker; Rasim Özcan; Bedri Kamil Onur Taş

doi:10.1080/1540496X.2015.1046349

Price manipulation by intermediaries

Serkan Imişiker, Rasim Özcan, Bedri Kamil Onur Taş^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

In this study, we investigate two main research questions using unique individual trade level data from the Istanbul Stock Exchange (ISE; renamed Borsa Istanbul in January 2013): (1) Do brokers conduct manipulative trades in the ISE? (2) Do these brokers gain returns from their manipulative behavior? We examine the trade-based "pump-and-dump" price manipulation scheme. Using the complete intraday trading history of stocks listed on the ISE over the 2003-6 period, we find that a significant percent of the trades conducted by brokers can be identified as consistent with the pump-and-dump price manipulation scheme, and brokers that conduct more pump-and-dump trades earn marginally higher profits.

Original language	English
Pages (from-to)	788-797
Number of pages	10
Journal	Emerging Markets Finance and Trade
Volume	51
Issue number	4
DOIs	https://doi.org/10.1080/1540496X.2015.1046349
Publication status	Published - Jan 1 2015
Externally published	Yes

Keywords

Broker behavior
Market structure
Trade-based manipulation

ASJC Scopus subject areas

Finance
Economics, Econometrics and Finance(all)

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10.1080/1540496X.2015.1046349

Cite this

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abstract = "In this study, we investigate two main research questions using unique individual trade level data from the Istanbul Stock Exchange (ISE; renamed Borsa Istanbul in January 2013): (1) Do brokers conduct manipulative trades in the ISE? (2) Do these brokers gain returns from their manipulative behavior? We examine the trade-based {"}pump-and-dump{"} price manipulation scheme. Using the complete intraday trading history of stocks listed on the ISE over the 2003-6 period, we find that a significant percent of the trades conducted by brokers can be identified as consistent with the pump-and-dump price manipulation scheme, and brokers that conduct more pump-and-dump trades earn marginally higher profits.",

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AB - In this study, we investigate two main research questions using unique individual trade level data from the Istanbul Stock Exchange (ISE; renamed Borsa Istanbul in January 2013): (1) Do brokers conduct manipulative trades in the ISE? (2) Do these brokers gain returns from their manipulative behavior? We examine the trade-based "pump-and-dump" price manipulation scheme. Using the complete intraday trading history of stocks listed on the ISE over the 2003-6 period, we find that a significant percent of the trades conducted by brokers can be identified as consistent with the pump-and-dump price manipulation scheme, and brokers that conduct more pump-and-dump trades earn marginally higher profits.

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Price manipulation by intermediaries

Abstract

Keywords

ASJC Scopus subject areas

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