taking of a short position and then undertaking further selling activity and/or disseminating misleading negative information by the attraction of other sellers. When the price has fallen, the position held is closed.
Effective implementation of surveillance alerts for Pump and dump requires capturing the following trade data:
trade data and position data
communications data
Effective surveillance for Trash and cash behaviour usually requires a combination of transactional and communications analysis. Trash and cash is very similar to pump and dump but executed in a sell direction (i.e. for short positions).
Taking of a short position in a financial instrument, related spot commodity contract, or an auctioned product based on emission allowances and then undertaking further selling activity and/or disseminating misleading negative information about the financial instrument, related spot commodity contract, or an auctioned product based on emission allowances with a view to decreasing the price of the financial instrument, related spot commodity contract, or an auctioned product based on emission allowances, by the attraction of other sellers. When the price has fallen, the position held is closed — usually known as ‘trash and cash’;
COMMISSION DELEGATED REGULATION (EU) 2016/522, Annex II, Section I, 4 (d)