Muddying the waters: when does short selling become market manipulation?
ISSN: 1359-0790
Article publication date: 8 February 2021
Issue publication date: 28 September 2021
Abstract
Purpose
This paper aims to consider “spoofing”, “layering” and “short reports” in the context of market manipulation and, in particular, a recent controversy involving a short-selling attack on a major UK listed company that was considered by the High Court.
Design/methodology/approach
The very demanding legal and evidential prerequisites and practical difficulties, involved in bringing both criminal and regulatory actions in such cases are identified and discussed, as is the role of the Financial Conduct Authority.
Findings
These challenges help explain why so few actions of this type are brought.
Originality/value
This is the first paper to consider the implications of Burford Capital Limited v London Stock Exchange Plc [2020] EWHC 1183 (Comm).
Keywords
Citation
Durston, G. (2021), "Muddying the waters: when does short selling become market manipulation?", Journal of Financial Crime, Vol. 28 No. 4, pp. 981-994. https://doi.org/10.1108/JFC-11-2020-0240
Publisher
:Emerald Publishing Limited
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