I've previously raised market manipulation via bot trading and small denomination trading with ASX.
There response below:-
Your complaint says that our previous response does not give you confidence that ASX is ensuring that market manipulation is not taking place, and that “ot trades consistently of less than 10 shares are not available to the wider community … [and] minimum trade purchases for the public are generally set as $500 in shares”.
Our response to your previous report of misconduct explained that:
1. ASX cannot investigate or punish market manipulation, because the legal authority to investigate and prosecute this activity rests with the Australian Securities and Investments Commission (“ASIC”, and not ASX. In that regard, it is entirely appropriate for you to do as you have suggested and to bring these matters to ASIC’s attention.
2. Most brokers use algorithmic trading to execute the instructions of both their retail and institutional clients and to process larger orders through multiple trades.
3. All investors are subject to the same rules regarding how many shares they may trade on ASX and the minimum size parcel that can be registered in their name in CHESS. Some brokers may require clients to place orders of a minimum size (typically $500) for commercial reasons but that does not prevent them executing those orders in smaller lots.
The only other thing we would add is that algorithmic trading is legal in Australia and has been extensively examined by ASIC. We refer particularly to ASIC’s findings in paragraphs 93 to 127 of ASIC Report 452, published in October 2015. (Link below).
, and not ASX. In that regard, it is entirely appropriate for you to do as you have suggested and to bring these matters to ASIC’s attention.
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