S. Research Seminar on Market Manipulation

This seminar is a “deep dive” into market manipulation, with an emphasis on the securities markets and extensions to commodities and futures as well. We begin with the history of prohibitions on market manipulation and literature on the conditions under which manipulation is expected to be profitable. We then critically appraise enforcement actions and criminal prosecutions for specific types of manipulation: wash trading / matched orders, spoofing and layering, “open-market” strategies like banging the close and cross-market manipulation, as well as “pump and dump” and “short and distort” cases. We consider jurisprudence on private damages claims under the Securities Exchange Act of 1934 and the Commodities Exchange Act and issues like standing, class certification and damages. We also consider manipulation claims under the antitrust laws. Finally, we conclude by considering to what extent traditional academic critiques of securities class actions apply to market manipulation cases.