Chapter 3 - Prohibited Activities Flashcards
1
Q
Matching
A
As with artificial transactions, the premise of matching is to stage a hot market for a particular stock. This is accomplished by a prearranged crossing of customer orders through the same broker-dealer. One customer enters a buy order and a second customer enters a sell order at the same time and under the same terms. The trade is reported on the Consolidated Tape, showing a trade where one really did not occur. Acting in concert to stage such a transaction is prohibited.
