Profitability of technical trading strategies under market manipulation

Most technical trading strategies use the official closing price for analysis. But what is the effect when the official closing price is subject to market manipulation? This paper answers this question by testing the difference of profitabilities between using the official closing price and the last tick price. The results show a significant improvement of profitability by using the last tick price over the official closing price based on a data set in Hong Kong from 2011 to 2018.

Dynamic Learning and Market Making in Spread Betting Markets with Informed Bettors

How Bookies Can Outwit Sophisticated Bettors Sports-betting markets are based entirely on predictions. A bettor has to pick a winning contestant, and a market maker―a bookie―bets on the opponent. As bookies have to take the other side of every bet, it is of great value to understand the market making problem, that is, how to set the spread lines as “prices” for the bookies. Nevertheless, understanding of this problem is limited. Specifically, sophisticated bettors exist in the market, and a bookie can be manipulated by skillful bettors because of information asymmetry. In “Dynamic Learning and Market Making in Spread Betting Markets with Informed Bettors,” Birge, Feng, Keskin, and Schultz study the market-making problem under information asymmetry and market manipulation. They show that, although many popular learning and pricing algorithms, such as Bayesian policies, are effective in learning, they are vulnerable to strategic manipulations. The authors propose a dynamic learning and pricing algorithm, called the inertial policy, that collects information from the market effectively but also protects the bookie from strategic manipulations.

A Tale of Two Boycotts: Riot, Reform, and Sugar Consumption in Late Eighteenth-Century Britain and France

Atlantic sugar production and European sugar consumption rose dramatically in the late eighteenth century. Despite this increase, there were two separate calls to refrain from consuming sugar in both Britain and France at the end of the eighteenth century. Demands for abstinence were directed toward women to stop household consumption of sugar. In Britain, abolitionists urged women to stop buying West Indian sugar because it was a slave good, produced on plantations where enslaved Africans were subject to cruelty and where mortality rates were high. In France, the call to forego sugar came during the early years of the Revolution of 1789, in response to rising sugar prices. The women of Paris were asked to refrain from buying sugar at high prices that were assumed to be a result of market manipulation by speculators and hoarders engaging in anti-revolutionary behavior. The increase in Parisian sugar prices was not driven primarily by profiteering, but by a global shortage caused by the slave revolt in the French colony of Saint-Domingue, now Haiti. Comparing these two sugar boycotts, one in Britain, the other in France, provides an opportunity outside of national historical narratives to consider how both events employed the same technique for very different aims. The call to renounce sugar in both cases used economic pressure to create political change. An exploration of these movements for abstinence will provide a better understanding of how they critiqued consumption, and translated discourses, both abolitionist and revolutionary, into practice.

Securities Market Conditions: the Phenomenon of the Influence of Private Investors by Means of Social Networks

The key trend in the development of the securities market in 2020–2021 was a record inflow of retail investors. At the same time, the increasing number of private investors on the stock market is accompanied by their active use of social networks. The development of social networks enables private investors to establish communication with each other, pool capital and develop common strategies, which ultimately increase the influence of individuals on the stock market dynamics. A review of modern economic scientific literature has shown insufficient coverage of the issue of social networks impact on the securities market. In this connection, the authors made an attempt to investigate such precedents to systematize them. The article presents the dynamics of the number of private investors and their share in trading turnover, gives reasons for the expansion of retail investors presence on the securities market, considers statistics demonstrating the breadth of the Internet and social networks penetration into various spheres of citizens' life. Cases of market manipulation through the actions of private investors in social networks were analyzed and summarized, as well as government regulators’ reaction to such actions was revealed. A number of risks associated with social networks influence on investment decisions by private investors are identified and recommendations for their protection and leveling the negative background of social networks are proposed.

Market Manipulation According to the Capital Market Law

The behavior (manipulation) for prompting selling or buying a capital market instrument or increasing or decreasing the value of capital market instrument artificially by deceiving the investors in the capital market sprincipally deteriorate the trust and stability of the capital market and damages the rights of the investors. Besides, such behavior upsets the transparency of the market and causes that the trust that should be in the market is breached. Such behavior called as manipulation in the capital markets are arranged under the name “market manipulation” in the article 107 of the Capital Market Law (SPKn) no: 6362. Because of the negative impacts on the market, having an arrangement as a crime separate from the fraud provisions included in the criminal code is principally a statement of a necessity. Market manipulation is subjected to a dual distinction as committed based on insider information and committed based on transaction. Article 107/1 regulates the market manipulation based on trade and Article 107/2 of SPKn the market manipulation based on information. Even though the same imprisonment is anticipated in the law for both market manipulation, for the market manipulation based on trade, a special remorse circumstance is included in the Article 107/3 and a special compliance with the laws reasons in the Article 108.

A Study on Investors Awareness about Equity and Currency Market in Private Sectors

The study was conducted to examine the awareness among the investors about equity and currency market. The study was useful to identify the investors’ mentality towards stock market. The researcher could gain knowledge about equity and currency market. As well, it’s also helpful in creating a good relationship with the investors. At the beginning of a business, owners put some effort to finding the finance assets into the business. This creates the shape of the capital on the business liability to a separate entity from its owners. Although, the foreign exchange market is isolated comparing to other than this. Nevertheless market manipulation of central banks by the foreign exchange market has to be mentioned to the nearest ideal perfect completion.