price swings v rigging5 Jan 2018 19:34
Re price rigging, I see it slightly differently - moving share prices around is part of the game that fund managers, market makers use to generate income. PIs need to be aware that this happens and not worry too much, but focus on the long term performance of business and share price which should correlate. In fact many PIs not monitoring movements constantly, won't even be aware of large swings that occur, often for no apparent reason. PFD price has been fairly stable for a period at close, but can be up / down 2-3% within minutes as algo trades swing the price around on low volume. Today nothing has changed (that I am aware of with the company performance) so I just take it that share has been driven down to shake the tree a bit and accumulate some more shares. This then becomes an opportunity for traders, who add to the volatility. I don't see how the FCA can regulate this, as its just IIs taking positions prior to results. Where the FCA have to get involved is with insider dealing, falsification of financial information etc. Just my thoughts for what it's worth..Rich