The headline reads “SEC Says New York Firm Allowed High-Speed Stock Manipulation“ but this was not a very sophisticated scam. This is case where a brokerage firm allowed access to their pipes by groups of overseas traders, primarily located in China, who manipulated the market. Based on the speed of their activity, it is clear that a human could not have physically been entering the orders. According to the SEC complaint:
“Certain overseas traders trading for Demostrate (a customer of Hold Brothers) engaged in extensive manipulative activity. Such traders
This content is restricted to site members. If you are an existing user, please login. New users may register below.