Market abuse is unlawful behavior that constitutes insider trading and market manipulation:
- Insider trading is trading a company’s stocks (or derivatives with underlying) with access to confidential or non-public information regarding the company.
- Market manipulation is the act of (attempting to) artificially inflate or deflate the price of a security at an abnormal or artificial level or sending misleading signals to the market participants.
Both practices are prohibited by the authorities that supervise financial markets. Such behaviour reduces market transparency, undermines investor confidence and reduces their willingness to participate in the financial markets. It may also impact liquidity in the financial markets.
We are committed to complying with applicable rules and regulations and to maintaining fair and orderly markets. Our goal is to prevent such prohibited practices and to provide a reliable environment in which everyone can trade with confidence. We therefore monitor all orders and transactions, as do the exchanges and regulators, to ensure that orders are properly executed for our clients.
For more information on market abuse, please see the BaFin's website. And for examples of market manipulation, please see here.