Prearranged trade
A prearranged trade is one whose terms are agreed away from the market and then entered on-venue to give it the appearance of competitive execution. Most venues prohibit it outright outside defined block-trade procedures.
Where does prearranged trade come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Legal & General Investment Management America, Inc. (matched orders, 2022) | SEC | 2022-11-21 | Matched Orders | $500k | settled |
| SEC v. Ahmad Haris Tajyar and Eric Leo Marsoubian (marking the close, 2021) | SEC | 2021-08-13 | Marking The Close , Matched Orders +1 | $220k | settled |
| SEC v. Ron Phillips (matched orders, 2021) | SEC | 2021-06-30 | Matched Orders | $30k | judgment |
| CFTC v. Connecticut Firm (matched orders, 2021) | CFTC | 2021-05-18 | Matched Orders , Wash Trading | $500k | judgment |
| CFTC v. Coinbase Inc. (exchange wash trading, 2021) | CFTC | 2021-03-19 | Exchange Wash Trading , Matched Orders +1 | $6.5m | judgment |