Q2: What does "mislead" mean in the context of the Rules?
A2: The language is intended to be a more specific statement of the general requirement that market participants are not permitted to act in violation of just and equitable principles of trade. This section of the Rule prohibits a market participant from entering orders or messages with the intent of creating the false impression of market depth or market interest. The Regulatory Division generally will find the requisite intent where the purpose of the participant’s conduct was, for example, to induce another market participant to engage in market activity.
It remains to be seen if this amendment to the futures exchange rules will be enforced or not.
Central Banks have a track record of deliberate forays into the futures markets to impact the price of precious metals as GATA has demonstrated.
Has there been a shift in Central Bank views to that of a more laissez-faire attitude?
If so, this blogger will be greatly surprised.