Scienter

Scienter is the mental state of intending to deceive, manipulate or defraud. It is a required element of a Rule 10b-5 claim, and it is what separates an aggressive trading strategy from a manipulative one on identical order data.

law and enforcement · updated 2026-09-08

See also

• Rule 10b-5 — Rule 10b-5 is the SEC's general antifraud rule, adopted under Exchange Act section 10(b). It prohibits any device, scheme or artif…
• Intent — Intent, in manipulation cases, means the purpose behind an order or statement rather than its effect. The anti-spoofing statute tu…
• Recklessness — Recklessness is an extreme departure from ordinary care that presents a danger of misleading others which the actor knew of or mus…

Terms that refer here

Bona fide order · Intent · Market manipulation · Open-market manipulation · Recklessness · Rule 10b-5

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