Hungarians Manipulated Prices On LSE
- 14 Aug 2015 9:00 AM
Three Hungarian brokers were fined £6 million after a British court found them guilty of spoofing, an illegal stock-market practice. The Hungarian gang used sophisticated high-speed trading programmes to influence prices on the London Stock Exchange. Swiss fund manager Da Vinci Invest was also fined £1.5 million.
Spoofing is a practice in which traders attempt to create an artificial price for the sale or purchase of stocks by placing orders and immediately cancelling them, with no intention of filling them.
The practice was thoroughly described in Flash Boys, a recent non-fiction book by American writer Michael Lewis.
Source: Hungary Around the Clock
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