FINRA Warns Of Potential China-Linked Trading Schemes

By Al Barbarino (February 3, 2021, 10:00 PM EST) -- A new alert from the Financial Industry Regulatory Authority warned of the "emerging" threat of stock-trading schemes executed by foreign entities, a move that signals an increased regulatory focus on U.S. brokerages and their dealings with China.

FINRA said in Monday's report that it has seen potential manipulation schemes involving accounts placing "multiple similar limit orders" on the U.S. exchange-listed stocks of issuers located in so-called restricted overseas markets, particularly China. 

"FINRA has observed red flags that the owners of the accounts may be acting at the direction of others, multiple accounts being opened using the same foreign bank for the...

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