Prearranged trade
A prearranged trade is one whose terms are agreed away from the market and then entered on-venue to give it the appearance of competitive execution. Most venues prohibit it outright outside defined block-trade procedures.
Where does prearranged trade come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. RSE Markets, Inc. (matched orders, 2023) | SEC | 2023-07-12 | Matched Orders | — | settled |
| SEC v. Legal & General Investment Management America, Inc. (matched orders, 2022) | SEC | 2022-11-21 | Matched Orders | — | settled |
| SEC v. William Scott Lawler, Esq. (matched orders, 2021) | SEC | 2021-08-18 | Matched Orders , Wash Trading | — | judgment |
| SEC v. Ahmad Haris Tajyar and Eric Leo Marsoubian (marking the close, 2021) | SEC | 2021-08-13 | Marking The Close , Matched Orders +1 | $220k | settled |
| SEC v. Ron Phillips (matched orders, 2021) | SEC | 2021-06-30 | Matched Orders | $30k | judgment |