The term "manipulative trade" does not reflect current challenges and requires constant adaptation. The article proposes to focus on detailing and suppressing a certain list of manipulative practices, based on the damage they cause. The object of the research is the manipulative transactions in the stock market, and the subject of the research is the methods of identifying manipulative transactions in the Russian stock market. The purpose of this study is the development of specific proposals and the selection of statistical methods relevant for the Russian stock market in the conditions of new industrialization to improve the current system of state control aimed at identifying various types and methods of manipulative trading in the stock market. The practical relevance of the study consists in the creation and testing in real conditions of the Russian stock market of a statistical machine algorithm based on the k-nearest neighbor algorithm, which can identify non-standard trading operations. The article presents statistical information reflecting the dynamics of the individual properties of the Russian stock market. Keywords-manipulative transaction, stock market, market abuse, financial technology, new industrialization, knearest neighbor algorithm, regulationI.

Diversification of financial activity involves the use of alternative income opportunities from various financial transactions

No abstract

On September 13, the Financial Industry Regulatory Authority announced that it has censured and fined Trillium Brokerage Services, LLC, a New York-based proprietary trading firm, $1 million for using an illicit high-frequency trading strategy and related supervisory failures. Nine traders at Trillium entered numerous layered orders on the NASDAQ Stock Market and NYSE Arca designed to create the false appearance of buying or selling in an attempt to obtain better prices than they would have otherwise, FINRA said in a news release. According to FINRA, the Trillium traders created a false appearance of buy-or sell-side pressure by entering the non-bona fide orders, often in substantial size relative to a stock's overall legitimate pending order volume. As a result, other market participants were induced to enter orders to execute against limit orders previously entered by the Trillium traders. Once such orders were filled, FINRA said, the Trillium traders would then immediately cancel orders that had only been designed to create the false appearance of market activity. The 46,000 instances generated approximately $575,000 in profit and took place over a three-month period, beginning on November 1, 2006. In addition to the nine traders, FINRA also took action against Trillium's Director of Trading and its Chief Compliance Officer. The 11 individuals were fined $802,500, required to return $292,000 in profits and suspended from the securities industry for periods ranging from six months to two years. As part of the settlement, Trillium and the individuals neither admitted nor denied the charges, but consented to the entry of FINRA's findings. To read the Letter of Acceptance, Waiver and Consent to FINRA, click here.