(redirected from wash trade)
Also found in: Dictionary, Thesaurus, Medical, Financial, Encyclopedia.
See: permeate
References in periodicals archive ?
In addition, between September 2008 and August 2009, Mr Danziger entered into 28 wash trades - risk-free trades, with the same party, in pairs that cancelled each other out and for which there was "no legitimate commercial rationale".
On a related point, FERC notes that its recently enhanced monitoring and surveillance capabilities have detected trading anomalies that were tied to various forms of market manipulation, including:imited risk or riskless combinations of trades to enhance the value of a position or portfolio, such as wash trades,repetitive, uneconomic physical trading or flows to benefit a position,trading to affect the formation of an index price,withholding physical generation to benefit a financial and/or physical position; and using virtual bids to benefit a financial and/or physical position.
In addition, despite red flags and trading alerts surrounding apparent wash trades, spoofing or layering by people affiliated with the unregistered BDs, Lightspeed did not investigate or otherwise pursue AML activities it should have acted on to follow through on the questionable transactions.