The Central Bank’s press service notes that the problem of insider trading and market manipulation is now relevant due to the fact that the structure of the financial market has changed.
Before 2022, there were many non-residents and institutional players on the market. After the start of the “special operation”* and the introduction of sanctions, as experts previously noted, the market became “more subtle”, with private investors, who are often inclined to make emotional decisions, becoming the main driving force. And due to the “subtlety” of the market, such decisions can lead to stronger price fluctuations.
All forms of market manipulation are aimed at changing the prices of exchange assets and fit into four categories, says Alexey Dobrynin, managing partner of the Pen & Paper law firm.
According to him, this could be the dissemination of false information, for example, about the outstanding financial results and prospects of a particular company. The second category is deals by agreement, when a group of investors make deals with each other over several trading sessions, significantly changing the price of an exchange asset and benefiting from this.
The third form is the mass submission and cancellation of trade orders, due to which fake orders appear on the exchange. This misleads other investors. The fourth is insider trading, when an investor is involved in the company’s business and makes deals with its securities based on important information that has not yet become public.