Transactions on the exchange which are brought about after prior agreement between two trading participants – by the immediate successive entry of similar, – but opposite orders (any purchase or sale transaction or series of transactions coupled with an agreement, arrangement or understanding directly or indirectly to reverse such transaction or series of transactions or limit the risk of either party to the transaction). Such agreements are almost always expressly prohibited by the Exchange Rules. Because it is a form of market manipulation – since no actual economic exchange of financial instruments or goods takes place – the supervisory authorities also pursue such transactions. – Contractual agreement authorizing a partner to execute certain acts on behalf of another in financial markets, especially moving of assets between investment opportunities. – See bear raid, bull raid, discretionary account, trades, collusive, trading, covert joint, crystallization, price manipulation, market manipulation, Pairoff, wash sales. – See BaFin Annual Report 2004, p. 186 (cases uncovered), BaFin Annual Report 2006, p. 164 (focus of cases uncovered is on over-the-counter securities), BaFin Annual Report 2007, pp. 183 f. (individual cases), and the respective BaFin Annual Report, chapter “Supervision of Securities Trading and Investment Business.”
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