Closing Period Abuse Detection
Elise Fleischaker
Closing Period Abuse Marking the close is a specific form of market manipulation designed to affect the closing or settlement price of an instrument. Because settlement prices are used to determine profit and loss for the day and calculate maintenance margins, trading during the pre-close period is heavily scrutinized by regulators. Traditional marking surveillance reviews for executions near settlement that move the price a fixed percentage away from either the last execution or prior settlement. Compliance officers often have to
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