Market Manipulation: regulations, case study and market impacts

This thesis explores the complex and evolving phenomenon of market abuse, with a specific focus on market manipulation. In particular, it examines how this type of misconduct occurs in practice and how it is managed by the regulatory authorities. The first part of the study provides a comprehensive overview of the theoretical and legal framework surrounding market manipulation, analysing how such practices can severely distort market mechanisms. It also considers how different jurisdictions, with a focus on the European Union and United State, have developed regulatory responses to counter these behaviours. The second part presents an in-depth case study of a specific form of market manipulation, spoofing, through the analysis of the enforcement action against J.P. Morgan Chase & Co. This case, involving a major global institution and resulting in one of the most prominent regulatory actions in recent history, provides a compelling example of how manipulative practices are detected and prosecuted. The analysis sheds light on the practical challenges faced by regulators in identifying and proving manipulative intent, as well as the broader implications of governance failures within financial institutions. The final section expands the discussion beyond the case study to examine the broader impacts of market manipulation. It engages with ongoing debates and regulatory dilemmas, evaluating the effectiveness of current legal instruments in countering manipulative behaviours. Special attention is given to the risks posed by technological advancements and the increasing complexity of global financial markets, which continue to challenge efforts to ensure market integrity.