Collusion and Price Rigging - REMIT at Shield

1. REMIT PRICE RIGGING AND COLLUSION As part of our series on REMIT, we discussed wash trades, layering and spoofing, as well as transactions involving fictitious devices or deception. In this article, we’ll define these forms of abuse, and explain how while they do overlap, collusion isn’t simply about just price-setting, and price-setting doesn’t always involve collusion. The Significance of Collusion Collusion is usually intended to affect the price of markets (hence the crossover with price-rigging or fixing). However, this is not always the case. It may also be for purposes such as to earn traders bonuses in scenarios where they are remunerated according to trade volume. Price-Fixing in Action Price-fixing is illegal for the same reason that monopolies are banned under antitrust laws: in a competitive market environment, prices cannot be dictated by a small number of actors. Invest in the right tools for Job More than ever, authorities are clamping down on the kinds of abusive behavior covered both by collusion and price-rigging/fixing. A growing number of fines being handed out show that authorities are keen to make an example of bad actors. WEBSITE HTTPS://WWW.SHIELDFC.COM/