Stock Manipulation Probe Launched After Price Spikes , page 1
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Topic started on 20-10-2008 @ 03:47 PM by anachryon
Bloomberg
U.S. regulators are investigating whether investors manipulated end-of-day stock prices to avoid being forced by their brokers to sell holdings.

These gaps, which caused the Dow Jones Industrial Average to swing as much as 104 points this month in the final minute of trading, suggest investment firms faced with client redemptions and plunging markets may be gaming the closing-auction system. The discrepancies spurred the Financial Industry Regulatory Authority, which oversees 5,000 brokerages, to look for evidence that investors are improperly swaying prices.


This is an interesting article that goes along with some of the discussion here on ATS recently. A number of members noted that it looked like some strange moves were made, or that there appeared to be outright manipulation going on. It looks like that speculation may indeed have been correct!
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