Stock market manipulated

Stock market manipulated

Author: Postoronny On: 04.06.2017

Today, I urge you to read this Letter in its entirety because what you read can and will affect you. After you read it, you can take immediate action by CLICKING HERE. It consists of buyers and sellers that exchange goods — in the case of the stock market, securities. You see, investors need to have the right information — the right market data — so that they can make proper decisions.

Investors should be able to see exactly how many bids and sell orders are available for a stock at any given time — especially for an exchange that has minimal liquidity and therefore is much easier to manipulate. The depth of the market can be seen using a paid service called Level II that gives you access to the order book in real time.

I have always said that anyone who trades should pay for such a service. Many retail investors I speak with have no clue that there are multiple parallel trading platforms for the stocks they buy in Canada. Some of these include Alpha Trading Systems, Chi-X Canada, Pure Trading, Omega ATS, and dark pool Match Now.

In other words, while you may be trading a stock on one platform, that same stock is being traded on different platforms at the exact same time. This not only removes transparency — especially for the average retail investor — but it also removes visible liquidity for any particular stock. Without the whole picture, market efficiency suffers and investors may struggle to obtain an accurate price for their securities.

When you see the price for a stock on your online trading platform but see a different price on Bloomberg, now you know why. CLICK HERE to Take a Quick Survey. For example, on October 26, , a named shareholder in Eastmain Resources Inc. But most retail investors and investment advisors did not see this until the Company issued a press release the next day.

Via IIROC in March Clients that are unaware of the constraints of the market data provided may make uninformed and therefore sub-optimal order entry decisions. IIROC believes it is important for firms to provide disclosure that describes the scope of market data provided to clients. The irony is that one of the most important aspects of trading stocks is transparency and timely disclosure; without a mandate for consolidated market data, we have neither.

The first step you can take to solving this very important issue and protect your future is to speak out.

How operator do manipulation in Stock Market'[In Hindi]

You can to do so by CLICKING HERE. Then we can move forward to signing a petition. I urge you to complete the survey. It will only take a minute but could go a long way in addressing this problem. You come home only to find your house is trashed — and now worth less than it was before. You lose money on your house, but the stranger legally made money renting your house out. According to IIROC, short sales as a percentage of trades on the TSX Venture from Jan April averaged 4.

But then, in the January 21, Short Sale Report, short sales as a percentage of trades on the TSX Venture averaged 6. Two years later, in the January 1, Short Sales Report, short sales as a percentage of trades on the TSX Venture averaged 7. In the most recent Short Sale Report, short sales on the TSX Venture averaged 8.

stock market manipulated

But why and how has short selling doubled? And what is the regulatory hurdle that may have caused this? From my Letter, Why the TSX Venture is Failing: The enhancements in the notice reflected recent regulatory amendments respecting short sale regulation, the introduction of a short marking exempt designation, amendments respecting dark liquidity on Canadian equity marketplaces, and functionality introduced as a result of client demand and market quality initiatives.

When you try to fight one problem with another problem, the result is never positive.

Two traders arrested over alleged manipulation of more than 2, stocks - MarketWatch

But first, look at the one-year chart for the TSX Venture Composite since the rules were announced:. When regulators forced the TMX Group to allow trading through alternative trading systems operated by third parties, it caused real-time transparency issues. When you combine the lack of transparency in parallel trading platforms with the use of High-Frequency Trading discussed last week , regulators had no choice but to eliminate the tick test rule, or uptick rule, for short selling.

Historically, you could only sell a stock short if the price is higher than the last different price; simply put, you can only short a stock as it was moving up.

As a result, it would be extremely difficult to enforce the uptick rule. By allowing competing trading platforms and encouraging HFT which was believed to create more liquidity , regulators had no choice but to remove the tick test rule. Short sell orders entered will be permitted to trade down to their limit price establishing a last sale price on a downtick.

Short Crosses will no longer be constrained by the last sale price. As a matter of fact, institutions often hammer stocks via short selling and back up their shorts with warrants they obtained in a previous financing. The removal of the uptick rule has created a breeding ground for short funds to make a lot of money betting against companies — especially companies that trade on the TSX Venture.

Furthermore, short funds can use computer trading to add additional pressure on stocks to the downside by making it look like there is a lot of stock for sale. In other words, stock manipulation. When the removal of the uptick rule was implemented on October 4, , a short marking exempt designation SME was also introduced. While this may have good intentions, it actually makes it easier for firms selling short to manipulate the price of stocks.

In the case of short selling, a trader would show pressure on the sell side through stacked sell orders, but remove them if the market begins to move higher.

These stacked sell orders are often viewed — especially by retail investors with a lack of market data — as weakness in a stock. You may be wondering: What happens if buyers come into the market? You see, these sell orders are often in small board lots usually shares so that anytime the lead sell order is hit, the firm only has to sell a few shares short.

When this happens, the computers automatically adjust their sell orders higher, while still maintaining pressure on the stock by maintaining the multiple stacked sell orders — often times behind a real sell order. And because the uptick rule was removed, short funds can now downtick a stock and still short the next day.

Downticking is when a trader sells stock so that the most recent change in the share price is negative. This is usually done right before the market closes using very small amounts. And since stock charts only follow the closing price of a stock, you can see how easy it is for a short seller to create a nasty looking downward chart by spoofing and down-ticking. Just ask the Ontario Securities Commission. The next time you see a stock in the green for the whole day, only to end up in the red with less than a minute to go, you now know what could have happened.

How can an investor react to this type of predatory short selling? If there was a regulatory mandate to provide consolidated market data in Canada, we could make much more informed investment decisions. If Regulators could mandate market data transparency with new short sale regulations such as the re-implementation of the uptick rule and more frequently updated short reports currently only reported semi-monthly , then maybe we could prevent the Canadian market from failing.

And with the removal of the uptick rule and the introduction of the SME designation, predatory short selling became even easier. The regulators know that these practices not only hurt Canadian companies but that it can have serious consequences on our whole financial system. On September 19, , the Ontario Securities Commission OSC ordered a restriction on the short sale of 13 financial stocks. This was done because the regulators wanted to prevent the banking system from collapse during the financial crisis and feared that rampant rumours spread by short sellers combined with the downward pressure of short sales would become a self-fulfilling prophecy.

In other words, the Canadian regulators were worried that short sales would drive down the price of financial stocks, which would lead people to believe the banks were in more trouble than they really were. Via the international law firm Eversheds Sutherland US LLP: As you can see, short selling was banned for financial stocks because false rumours and misinformation were being spread, and manipulative short selling caused unjust downward pressure, leading to a decline in the share prices of the banks, which then led to a lack of confidence in the banks themselves.

When you combine the removal of the uptick rule, the introduction of the SME designation, AND a lack of consolidated market data, Canadian investors really are getting screwed.

stock market manipulated

If this is allowed to continue, I fear it will eventually lead to the failure of the Canadian market altogether as retail investors lose confidence. That would be a shame because the Canadian capital markets is a HUGE part of the Canadian economy. It provides jobs and brings about innovation. I have talked about this in-depth in the past but with recent events, I feel compelled to do it once again.

I track this stock intensely on most days, using Level II data, and am constantly anticipating this action in the final seconds of trading. While I believe the U. Traders still lead, in total dollar amounts, the world in stock price manipulation, this activity in Canada hurts the companies most at risk, the junior up and coming firms.

Who will continue to invest in these firms knowing how greedy traders can manipulate them out of business? Literally no venture stock seems to get on a great run and hold a price because as soon as they do these predatory shorts come in and attack them over and over which has taken the life out of the venture exchange because now retail investors dont see that hope they once had in having a chance to make a great return so they no longer play the market or they now get in and out very quickly and it is a game of a penny here or a penny there absolutely pathetic it has to be stopped now — The only one making any fortunes are these crook predators what a absolute shame!!!!

Short selling should not be allowed. Full disclosure on all markets should be available to all.

Short sellers and HFT are just swindlers and bank robbers that don t use a gun! Market is rigged against retail investors worse than Las Vegas. The whole area of short selling should be evaluated. Why should a broker have the authority to take stock from my account and loan these shares to someone else to sell as if they own the shares? Brokers are not your friend. The game is stacked in favor of the professionals. More so since the investment bankers were allowed to own stockbrokers. More so since the trading floor disappeared.

Just look up Jay Gould. No rules you can use to sue. He resisted a rule book being published and when it finally came to be it was a useless document.. The separation of investment banking and brokers done in the SEC Act of 32,33 was a positive but we are back to the rules of the Twenties.

The uptick rule was established in but was habitually violated by the floor traders and the market makers who destabilized markets at will. Good luck with your petition.

After all that film revealed about the CDO ponzi scams, the last caption read…. Shorting of stocks is a form of legalized fraud that should not be allowed in a fair and honest market. When the supply of stocks is artificially increased by so called borrowing, then re-selling, it is evident from economics that the price will drop. No sane owner of the stocks would lend them out if he truly had a choice, only to see them returned at a depreciated value. It is the responsibility of stock exchanges to set up an ideal system of fair and honest rules and likely disallow companies from trading their stocks on multiple exchanges.

If they fail in this regard, all they will be left with are cheaters and suckers. I think this service should have been incorporated into the cost of trading. I would also go one step further and say that the way Exchanges operate is also not on a level playing field.

To alleviate advantages over smaller investors, traders and the like, is for Exchanges to implement similar measures like what the NHL has done with their salary caps per team. I know that sounds radical, but this in my opinion would reduce and contain manipulation of stocks, front running, HFT, prevent layering the books, help market makers stay in touch, prevent shorting pressures and many more strategies that hedge funds and otherwise are imposing on Exchanges.

This is another example of how the dishonest and greedy come out ahead of the working, honest people every time. It all starts at the top with crooked, greedy politicians and people with power. Only to be swindled by con artists waiting for you which ever direction you go. Usually in a scam dressed up to look like a reasonable investment by some bank, financial institute, brokerage firm, etc.

How The Big Players Manipulate The Stock Market - G. Hudson | Seeking Alpha

In my opinion the whole world economy is a ponzi scheme and the investments most of us have are not worth the paper they are printed on. Which is going to make for a big shit show not to far down the road.

But I am sure all the greedy douche bags who have allowed it to get to this will O. You are misguided when you say that stock market manipulation is against the law, banks, central banks and the government do it all the time.

What you probably meant to say is the stock market manipulation is against the law for non-authorized, the average investor, personal. Something we Canadians should be very concerned about is the up coming nafta renegotiation where the US is going to become more demanding to get what they want at our expense. Our government has started making more market deals with other nations lessening our dependence on trade with the US as I believe the new nafta deal will cause great pain for many employees as jobs will be lost on both sides.

Small businesses create many good and unique jobs in this country many of them trade on the Tsx Venture such that shorting these stocks should be banned completely. It has always be wrong that governments fiercely protect large corporations, but the let them beat up the venture companies drive their share price down so they can buy them out cheaply.

They then brag about what great deals they have made then slap us in the face by selling the products these ventures companies spent so much time and effort to create a product that would benefit so many, then selling them back to us at exorbitant prices, now both retail investors and product customers loose. We also need to make sure that phony companies that use the Venture to rob retail investors of their hard earn money be severely dealt with as over the years this has caused many investors to stop trading the Txs venture.

Who owns the Exchanges in Canada? What a Shame our Canadian Banks stealing from us with spoof trading playing both sides of the market and not only that they route there trades to mask there trades on both bid and asks.

We are being kept in the dark Corruption is rampant in the markets. These machines run by banks should be outlawed immediately. Government regulators are a joke. As a Canadian stock investor things need to change for those individual investors who wish to purchase Canadian Stocks. Both the TSX and TSXV have been hammered these last few years because of the way things are currently set up.

If we want a thriving Canadian stock market than things need to change or it will go down the tubes as it has been steadily declining over the past several years now.

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I am at the point where I will not buy any Canadian stock because it is so manipulated. It in my mind is as dishonest as taking money from my account. Just finishing reading reading Flash Boys by Michael Lewis and recommend it to all to really be enlightened on this subject. Don't subscribe All Replies to my comments Notify me of followup comments via e-mail. You can also subscribe without commenting.

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