Regulatory Alerts2025-07-02
AFM Market Watch 13: Wash Trades Impact in Current Landscape
The Dutch Authority for the Financial Markets (AFM) issued this Market Watch to clarify the regulatory implications of wash trades under the Market Abuse Regulation. The document requires market participants to analyze whether such transactions create false or misleading signals regarding supply, demand, or price, particularly within complex algorithmic and commodity derivative strategies. While the AFM advises a case-by-case assessment rather than mandatory reporting for every instance, it emphasizes that systematic wash trades may trigger Suspicious Transaction and Order Reports if they disrupt price formation.
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