Note from the Publisher: No, we’re not talking about the critters of the night. BATS Global Exchange, which accounts for nearly 20% of all stock trading in the US, and which we recently reported will now be the listing exchange for the Winklevoss Bitcoin Trust when it goes pubic, has a new tattletale initiative. They are asking brokers to report when they see potentially suspicious market manipulation from their peers.
“Bats Global Markets Inc., one of the three big operators of U.S. stock exchanges, wants brokers to start snitching on their peers when they suspect market manipulation.
Through a new initiative it likens to a neighborhood watch, Bats will encourage brokers to report suspicious price quoting and trading in its U.S. equities and options markets. The company handles about one-fifth of stock trading in America.
“We can help stop some of this nefarious behavior and point our investigations in better directions,” said Tami Schademann, Bats’s chief regulatory officer, adding that manipulation is rare on its markets.
Bats is taking an increasingly aggressive stance to stamping out spoofing, a form of market manipulation made famous by the arrest last year of Navinder Singh Sarao, accused by the U.S. government of worsening the 2010 flash crash.”