Market manipulation
As market manipulation a set of practices is called, by unfair measures pricing in markets to influence, in order to obtain unjustified profits. These practices are banned in many countries. From an economic point of view, market manipulation leads to inefficiencies .
Legal definition
The Market Abuse Regulation has been in force across Europe since July 3, 2016 . The legal definition of market manipulation can be found in Article 12 of this regulation. The previously applicable Section 20a WpHG and the supplementary Market Manipulation Specification Ordinance - MaKonV were repealed as a result of this change in the law.
Price maintenance is typically not market manipulation (Article 5 Paragraph 4 of the Market Abuse Ordinance).
Forms of market manipulation
Stock spam
Under stock spam is defined as the mass sending of e-mails (spam) with advertising for a share , to drive the price up. This practice also contradicts section 7 of the Press Code , which regulates "that editorial publications may not be influenced by private or business interests of third parties or by the personal economic interests of journalists".
Cornering
Cornering means buying up product groups or stock classes as completely as possible in order to determine the price. In their silver speculation, the Hunt brothers drove the price of silver from $ 2 to $ 50 by buying the market empty.
Scalping
Under scalping (English to scalp "scalp that fleeced pull") refers to the actions of some fund managers, publishers of investment newsletters, financial journalists and other colloquially sometimes "market gurus" called people, at a favorable rate market close shares of mostly small businesses buy and then distribute targeted positive reports about the security and recommend it to the public for purchase.
Art market manipulation
In addition to stocks and raw materials, works of art are increasingly being viewed as investment and speculative objects, so that manipulation also occurs in this area. Price formation on the art market is largely based on auction surcharges achieved, which can be accessed using databases known in the market. Cases are known in which the hammer prices for works by certain artists were driven up by straw people. Because of such surcharges, other market participants inevitably create wrong values, which leads to excessive prices. In this way, for example, the art dealer Tom Sack managed to sell hundreds of self-painted (and in themselves worthless) pictures on the art market and cause damage of around one million euros.
Legal situation in Germany
The regulations of the Market Abuse Regulation have been in effect since July 2016 . Violations of their prohibitions on market manipulation are to be sanctioned in accordance with Section 120 (2) No. 3 and (15) No. 2 as well as Section 119 (1) of the WpHG . Fines of up to 15 million euros or 15% of the annual turnover or up to five years imprisonment can be imposed.
In Germany, BaFin is primarily responsible for investigating and preventing market manipulation . In addition, the respective stock exchange supervisory authorities and the public prosecutor's offices have competencies.
At the European level, the Market Abuse Directive existed from 2003 to 2016 (Directive 2003/6 / EC of the European Parliament and of the Council of January 28, 2003 on insider dealing and market manipulation). The Market Abuse Regulation (Regulation 596/2014) and the Market Abuse Directive II (Directive 2014/57 / EU) now form the European regulatory regime.
Legal situation in Austria
Article 12 of the Market Abuse Ordinance regulates the prerequisites for market manipulation at European level uniformly for all member states. For particularly severe forms of market manipulation, Art 5 in conjunction with Art 7 f MAD II (Market Abuse Direction II, RL 2014/57 / EU) provides for judicial penalties to be implemented by the member states. In accordance with these requirements, Austria has established a two-tier system of sanctions for market manipulation: Section 48c BörseG regulates the administrative sanctions for "normal" market manipulation (fine of up to 5 million euros or three times the amount of the benefit drawn), Section 48n BörseG regulates the criminal liability of particularly serious forms of market manipulation ( Imprisonment 6 months to 5 years). The FMA continues to be primarily responsible for prosecuting market manipulation, and the judicial authorities in the area of criminal law.
Web links
- Martin Paul Waßmer, Criminal Market Manipulation by Matched Orders in the Regulated Unofficial Market [1]
Individual evidence
- ↑ Market Manipulation Concretization Ordinance - MaKonV (repealed on January 2, 2018)
- ↑ Press Code website of the German Press Council , accessed on November 14, 2011.
- ^ "Art is full of envious people" , article on the Tom Sack case in the Neue Westfälische on February 16, 2010, accessed on October 10, 2015.
- ↑ BaFin website on the subject of market manipulation ( memento of the original dated May 31, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
