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ARTICLE · 21 FEBRUARY 2023

Market manipulation and online messengers: a cautionary tale

Piper Alderman
Piper Alderman
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What is market manipulation? Recent case serves as reminder to be wary of conduct that may constitute market manipulation.

AustraliaFinance and Banking
Sina Kassra
Sina Kassra
Egor Serov
Egor Serov
Samiha Asim
Samiha Asim
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A recent case serves as a cautionary reminder to anyone participating in transacting financial products in Australia to be wary of conduct that may constitute market manipulation.

The recent case of R v Evans [2023] WASCR 2 (Evans) serves as a timely reminder that all market participants in Australia are prohibited from engaging in 'market manipulation'.

What is market manipulation?

It is not one homogenous form of activity and can capture a range of conduct which fundamentally undermines market integrity and confidence. Although the term "market manipulation" is not itself used, conduct constituting it is legislatively prohibited in section 1041A of the Corporations Act 2001 (Cth). It states that:

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