Knowledge Base

← Market Abuse Regulation

Questions

Which prohibited practice is specific to collective investment management and involves the execution of orders after the centralisation cut-off time?

Insider trading
Market manipulation
Late trading
Spoofing

Which practice is defined as the acceptance of orders after the centralisation cut-off time in a UCITS?

Insider trading
Wash trading
Late trading
Layering

Which indicator can signal possible insider trading?

A general market decline
The appearance of new participants on the security
An increase in interest rates
A change of management in a company

What is the main indicator of insider trading according to the body of evidence method?

Unusual increase in traded volumes
Abnormal timing of transactions
Atypical price movements
Appearance of new market participants

Wash trading is characterised by transactions carried out between linked accounts without any real change of ownership or transfer of economic risk.

True
False

Spoofing

Click to see answer

Layering involves orders placed at a single price level close to the best limit.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Late trading
Spoofing
Abnormal timing of transactions
Categories:

Insider trading

Late trading

Market manipulation