Related provisions for APER 4.1.12
1 - 2 of 2 items.
In the opinion of the FSA the following factors are to be taken into account when considering whether behaviour is for "legitimate reasons", and are indications that it is not:(1) if the person has an actuating purpose behind the transaction to induce others to trade in, or to position or move the price of, a qualifying investment;(2) if the person has another, illegitimate, reason behind the transactions or order to trade; [Note: Recital 20 Market Abuse
In the opinion of the FSA the following factors are to be taken into account when considering whether behaviour is for "legitimate reasons", and are indications that it is:(1) if the transaction is pursuant to a prior legal or regulatory obligation owed to a third party;(2) if the transaction is executed in a way which takes into account the need for the market as a whole to operate fairly and efficiently;(3) the extent to which the transaction generally
It is unlikely that the behaviour of market users when trading at times and in sizes most beneficial to them (whether for the purpose of long term investment objectives, risk management or short term speculation) and seeking the maximum profit from their dealings will of itself amount to distortion. Such behaviour, generally speaking, improves the liquidity and efficiency of markets.
It is unlikely that prices in the market which are trading outside their normal range will necessarily be indicative that someone has engaged in behaviour with the purpose of positioning prices at a distorted level. High or low prices relative to a trading range can be the result of the proper interplay of supply and demand.
In the opinion of the FSA , the following factors are to be taken into account in determining whether or not a person's behaviour amounts to market abuse (manipulating transactions): (1) the extent to which the person had a direct or indirect interest in the price or value of the qualifying investment or related investment;(2) the extent to which price, rate or option volatility movements, and the volatility of these factors for the investment in question,
The following are examples of behaviour that may amount to market abuse (manipulating transactions):(1) a trader simultaneously buys and sells the same qualifying investment (that is, trades with himself) to give the appearance of a legitimate transfer of title or risk (or both) at a price outside the normal trading range for the qualifying investment . The price of the qualifying investment is relevant to the calculation of the settlement value of an option. He does this while