The content of the various messages you may read on the ShareCrazy Community Bulletin Boards represent opinions of each author, and do not represent the opinions of ShareCrazy.com Limited. It is important to remember that the other contributors are strangers to you and may make statements which may be misleading, deceptive or incorrect. You should remember that investments can go down in value as well as up, and that past performance is no guide to future performance.
The ShareCrazy Community Bulletin Boards are provided to help all members share information. Whilst it may assist with your investment research you need to consider carefully whether you should make investment decisions based on what you see without doing further research on investments you are interested in. In the opinion of the ShareCrazy team, it is important to consider your own financial position and to undertake extensive research before buying shares, or undertaking any other form of investment activity.
PRIVATE MESSAGE SYSTEM
ShareCrazy provides a Private Message system as part of our bulletin board facility. Due to past abuse of the Private Message system on the previous website by certain rogue individuals, and following requests and complaints from members, the PM system is now scanned regularly as a matter of course to protect our members and to prevent spamming and other forms of message abuse.
BULLETIN BOARDS - INSIDER DEALING AND MARKET ABUSE
Please note: The FSA pays particular
attention to information exchanged via financial bulletin boards or
chatrooms and has produced a list of possible indications of Insider
Trading and / or Market Abuse that it looks out for.
Examples of such indications are shown
below and Share Crazy clients are therefore advised that should there
be grounds to suspect information exchanged or views posted on our bulletin
boards is or has been related to possible insider dealing or market
manipulation, the ShareCrazy compliance team may be obliged to take
action in accordance with FSA guidelines.
POSSIBLE SIGNS OF INSIDER DEALING
A client opens an account and immediately gives an order to conduct
a significant transaction or an unusual order in a particular security
- especially if the client is insistent that the order is carried
out very urgently or must be conducted before a particular time specified
by the client.
A transaction is significantly out of line with the client's previous
investment behavior (e.g. type of security; amount invested; size
of order; time held etc).
A client specifically requesting immediate execution of an order
regardless of the price.
Unusual trading in a company's shares before the announcement of
price sensitive information relating to the company.
An employee's own account transaction timed just before client transactions
and related orders in the same stock.
POSSIBLE SIGNS OF MARKET MANIPULATION
Information dissemination
Whether orders or transactions undertaken by persons are preceded
or followed by dissemination of (including false or misleading) information
by the same persons or persons linked to them.
Whether orders or transactions are undertaken by persons before
or after the same persons or persons linked to them produce or disseminate
research or investment recommendations which are erroneous or biased
or demonstrably influenced by material interest one or more institutional
investors known to be affiliated with the issuer, or a party with
a particular interest in the issuer such as a bidder/potential bidder).
Price movements
The extent to which orders or transactions represent a significant
proportion of the daily volume of transactions in the stock concerned,
particularly when these activities lead to a significant change in
the price of the stock.
The extent to which orders or transactions are undertaken by persons
with a significant buying or selling position in a stock and which
lead to significant changes in the price of the stock (or a related
derivative).
Dealing Patterns
An unusual concentration of transactions in a particular stock (e.g.
with one or more institutional investors known to be affiliated with
the issuer, or a party with a particular interest in the issuer such
as a bidder/potential bidder).
An unusual repetition of a transaction among a small number of clients
over a certain period of time.
An unusual concentration of transactions and/or orders with only
one client; or with a limited number of clients (especially if the
clients are related to one another).
No Change of Ownership
Transactions which result in no change of beneficial ownership of
a stock.
Short-term reversal price change
The extent to which orders or transactions include position reversals
in a short period, and which represent a significant proportion of
the daily volume of transactions in a stock, and which might be associated
with significant changes in the price of a stock.
The extent to which orders or transactions undertaken are concentrated
within a short time span in the trading session and lead to a price
change which is subsequently reversed.
The extent to which orders to trade change the representation of
the best bid or offer prices in a stock, or more generally the representation
of the order book available to market participants, and are removed
before they are executed.
Setting reference prices
Transactions with no other apparent justification than to increase/decrease
the price of, or to increase the volume of trading in a stock. Particular
attention might be given to orders of this kind which result in the
execution of transactions near to a reference point during the trading
day - e.g. near the close.
A client submits orders, which, because of their size in relation
to the market in that security, will clearly have a significant impact
on the supply of or demand for or the price or value of the security.
Particular attention might be given to orders of this kind which result
in the execution of transactions near to a reference point during
the trading day - e.g. near the close.
Transactions which appear to be seeking to modify the valuation
of a position while not decreasing/increasing the size of that position.
Entering significant orders in the central order book a few minutes
before the price determination phase of the auction, and then canceling
these orders a few seconds before the order book is frozen for computing
the auction price so that the theoretical opening price looks higher
or lower than it otherwise would do.
Transactions which appear to be seeking to maintain the price of
the underlying stock below the strike price of a related derivative
at expiration date.
Transactions which appear to have the purpose of increasing the
price of a stock during the days preceding the issue of a related
derivative/convertible.
Transactions which appear to have the purpose of maintaining the
price of a stock during the days preceding the issue of a related
derivative/convertible when the market trend is downward.
Transactions which appear to be aimed at modifying the price of
the underlying stock so that it crosses over the strike price of a
related derivative at expiration date.
Transactions which appear to be seeking to modify the settlement
price of a stock when this price is used as a reference/determinant
in the calculation of margins requirements.
When a transaction is to be executed, changing the bid-ask prices
(as computed by the trading system) when this spread is a factor in
the determination of the price of that transaction.
Breach of rules
Transactions which appear to be seeking to bypass the trading safeguards
of the market (e.g. as regards volume limits; bid/offer spread parameters;
etc).
