ICE Canada’s Q&A on Disruptive Trading Practices
Elise Fleischaker
ICE Canada's Q&A on Disruptive Trading Practices FAQ, January 2016 Spoofing: Question 1. page 2. Momentum Ignition: Question 12, page 4.
Read More
Momentum Ignition Detection
Elise Fleischaker
The Momentum Ignition Detection model identifies behavior designed to initiate rapid market movement at the expense of other participants. Igniters and Directional Manipulation Momentum ignition is a trading practice that attempts to create, or exacerbate, highly directional price movement and capitalize on the result. The practice has been linked to numerous disruptive market events and is considered a form of market abuse by all major exchanges. Generally speaking, momentum ignition is done by initiating a series of aggressive executions over a short period
Read More
Momentum Ignition: Arson for Financial Markets
Elise Fleischaker
ESMA has defined momentum ignition as a case of prohibited market manipulation. ICE Canada considers this to be disruptive, and so does the CME Group. One UK government report stated that momentum ignition will “induce algorithms to compete with other algorithms, can push prices away from fundamental values.”* This leads us to the question - what exactly is momentum ignition? And how do we detect that is has occurred so that compliance teams can surveill for this prohibited activity? An
Read More
Foreign company Total SA pays $3.6M to settle CFTC market manipulation charge
Elise Fleischaker
http://www.reuters.com/article/usa-total-cftc-idAFL1N13W1VA20151207 The CFTC is settling with Total SA, but it looks like the U.S. Federal Energy Regulatory Commission is still investigating according to a FERC staff notice on 9/21/2015. The CFTC Press Release PR7289-15 CFTC Files and Settles Charges against Total Gas & Power North America, Inc. and Therese Tran for Attempted Manipulation of Natural Gas Monthly Index Settlement Prices Order Requires TGPNA and Tran Jointly to Pay a $3.6 Million Civil Monetary Penalty and Imposes a Bid-Week Trading Limitation for
Read More