Market Manipulation as a Security Problem

Understand

Order matching systems form the backbone of modern equity exchanges, used by millions of investors daily.

• Thus, their operation is strictly controlled through numerous regulatory directives to ensure that markets are fair and transparent.
• Despite these efforts, market manipulation remains an open problem.
• In this work, we focus on a class of market manipulation techniques that exploit technical details and glitches in the operation of the exchanges (i.e., mechanical arbitrage).