Markedssvindel

Markedssvindel (Danish for market fraud) refers to illegal practices designed to deceive investors or to manipulate the price, volume, or liquidity of financial instruments and markets. The concept covers a range of deceptive schemes and manipulative techniques that undermine fair and orderly markets and impede accurate price discovery. While the specifics vary by jurisdiction, markedssvindel generally involves intentional misrepresentation, false signals, or covert manipulation that gives some traders an improper advantage at the expense of others.

Common forms of markedssvindel include market manipulation (such as attempts to move a security's price through coordinated trades or misleading information), spoofing and layering (placing orders to create the impression of demand or supply and then canceling them), wash trading (creating artificial activity without genuine risk transfer), and pump-and-dump schemes (promoting a security with false or misleading statements and selling once prices rise). Insider trading and misrepresentation or dissemination of false information also fall under related categories of market fraud.

Regulation and enforcement: In Denmark, markedssvindel is addressed by financial regulation enforced by the Danish Financial Supervisory Authority (Finanstilsynet) together with criminal law, and is also subject to European Union rules such as MiFID II. Regulatory authorities monitor trading activity, require timely trade reporting, and pursue civil or criminal penalties against individuals or firms that engage in such practices. Sanctions may include fines, market prohibitions, disgorgement of ill-gotten gains, and imprisonment.

Impact and prevention: Markedssvindel undermines investor confidence, increases the cost of capital, and reduces market efficiency. Detection relies on market data analytics, surveillance systems, and cooperation between exchanges, regulators, and law enforcement. Transparency, robust enforcement, and clear market rules are used to deter markedssvindel and to protect market integrity.