Abusive squeeze

Definition

taking advantage of the significant influence of a dominant position over the supply of, or demand for, or delivery mechanisms for an instrument in order to materially distort, or likely to distort, the prices at which other parties have to deliver, take delivery or defer delivery in order to satisfy their obligations

Surveillance

Effective implementation of surveillance alerts for ping orders requires capturing the following trade data:

  • trade and position

  • volume

  • market size / open interest

Regulatory source

Taking advantage of the significant influence of a dominant position over the supply of, or demand for, or delivery mechanisms for a financial instrument, a related spot commodity contract, or an auctioned product based on emission allowances, in order to materially distort, or likely to distort, the prices at which other parties have to deliver, take delivery or defer delivery in order to satisfy their obligations — usually known as ‘abusive squeeze’;

COMMISSION DELEGATED REGULATION (EU) 2016/522, Annex II, Section I, 2 (b)