Independent price verification

Independent price verification is the process in which a control group separate from the trading desk tests the desk's marks against outside prices, such as vendor or dealer quotes, and asks for adjustments when they differ by more than a set tolerance.

manipulation techniques · updated 2026-10-09

Where does independent price verification come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Mismarking — Mismarking is deliberately recording the value of positions or portfolio assets away from what they are worth, to hide losses, inflate a fund's reported performance or raise pay and fees, without any trade in the open market.

Enforcement actions involving these techniques

See also

• Mark to market — Marking to market is valuing a position at current market prices. Because it converts a price into reported profit, collateral and…
• Control failure — A control failure is a breakdown in the systems meant to prevent or detect misconduct. Many large penalties are imposed for contro…

Back to the full glossary — 282 defined terms.