Common forms of misconduct are playing out in new digital asset classes, as shown in a report from the Financial Markets Standards Board (FMSB), which presents a study of misconduct in global financial markets over the past 200 years.
FMSB’s analysis found that: there are limited patterns of poor behaviour and misconduct which boil down to six simple behaviours (price manipulation, circular trading, misuse of inside information, reference price influence, improper order handling, and misleading customers and/or markets). Their analysis also showed that these behaviours are evident worldwide across global markets and is not specific to particular asset classes. Finally, the six behaviours appear to adapt easily to new technology and market structures such as those associated with crypto assets.
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