undertaking trading or entering orders to trade in one trading venue or outside a trading venue (including entering indications of interest) with a view to improperly influencing the price of a related financial instrument in another or in the same trading venue or outside a trading venue, related spot commodity contract, or a related auctioned product based on emission allowances
Effective implementation of surveillance alerts for cross-product manipulation requires capturing the following trade data:
order data (including unexecuted orders)
trade data
Trade, order and price data from all trading venues that a firm participates in and all OTC activity needs to be considered together through the lenses of the same underlying risk in designing surveillance alerts.
The simplest example would be manipulation across cash and futures (e.g. stock and equity future). More advanced scenarios could include OTC products (total return swaps, contracts for difference) and options.
Inter-trading venue manipulation is similar to cross-product manipulation.
Undertaking trading or entering orders to trade in one trading venue or outside a trading venue (including entering indications of interest) with a view to improperly influencing the price of a related financial instrument in another or in the same trading venue or outside a trading venue, related spot commodity contract, or a related auctioned product based on emission allowances — usually known as ‘cross-product manipulation’ (trading on a financial instrument to improperly position the price of a related financial instrument in another or in the same trading venue or outside a trading venue).
COMMISSION DELEGATED REGULATION (EU) 2016/522, Annex II, Section I, 2 (d)