Circular Trading

Circular Trading

A scheme in which a broker enters a sell order with the knowledge that an exactly offsetting buy order is being entered or will be entered at roughly the same time. Circular trading does not allow for competition and does not result in a change of beneficial ownership. For that reason, it is illegal.
References in periodicals archive ?
That allows Menon to juggle many balls at once: He can promise banks that he'll never ask them for the same data twice; police circular trading in stock markets; ready specifications for a common QR code; and come up with a law that would force all large e-money players to protect the account balances of Singapore residents but leave smaller firms free to grow.
Describing the Rs 6,100-crore Bank of Baroda scam as a one of the events, he said the scam originated misusing the circular trading mechanism to take advantage of duty drawbacks.
However, the central bank issued guidelines a week later that barred banks from buying bonds issued by other banks in order to forestall risks arising from circular trading, whereby lenders agree to buy each other's bonds.
Thirty- three entities allegedly involved in circular trading and share manipulation have been ordered by the Securities and Exchange Board of India ( Sebi) to appear before it.
FR) - from trading government bonds in the secondary market for six months due to allegations of circular trading, Dow Jones Newswires has reported, citing a spokeswoman for the Reserve Bank of India (RBI).
The SECP has issued warning letters to 27 brokers of the Karachi Stock Exchange and 7 brokers of Lahore Stock Exchange for possible violations of the blank sales, wash sales, circular trading, cross trades, broker misconduct etc.
The company, based in Kanonji, Kagawa Prefecture, has admitted to involvement in so-called circular trading, engaging in sales and purchases of goods totaling more than 100 billion yen on fake invoices mainly aimed at padding sales.
SEBI intends to build analytical models using SAS([R]) Enterprise Miner[TM] to identify known market manipulation patterns such as circular trading, pump and dump, insider trading and front running.
The Sebi chairman explained that there are different kinds of frauds such as synchronised and circular trading, price manipulation and spoofing of markets with high frequency trading.
Diversion of funds and circular trading are some areas that the government and the regulators want to plug by restricting multi-layering of subsidiaries.
PA) were named in the ban, which follows investigations into so-called circular trading in government bonds.
The company, based in Kanonji, Kagawa, has admitted to involvement in so-called circular trading, engaging in sales and purchases of goods totaling more than 100 billion yen on fake invoices mainly aimed at padding sales.