STOCK MARKET MANIPULATION: PRACTICES, CHALLENGES, AND REGULATORY TRENDS

Abstract

This study is devoted to a comprehensive analysis of Russian practice in regulating the stock market with regard to manipulation. The analysis includes a review of the current legislation of the Russian Federation, decrees of the Bank of Russia, an assessment of the relevance of these acts, as well as an identification of the challenges arising from the natural development and digitalization of the stock market and the related agency relationships. The examination of practice also includes a system of penalties for violating legislation and norms in the field of market manipulation, which involves a comparison of the criminal legislation of the Russian Federation with the practice of penalties in the United States as an example of a country with a developed stock market. The analysis of challenges involves, first and foremost, examining the changing attitude of private investors towards the stock market, moving towards greater accessibility for the general public, which gives rise to demand for advisors on social media and the emergence of demand for expert opinion in terms of investments. It has been concluded that such demand creates a boundary: are such statements from unqualified advisors merely personal opinions, or do they create risks of market manipulation, influencing the opinions of private investors and, consequently, affecting the demand for a specific instrument? The measures taken by the Bank of Russia to address this problem have been examined, and conclusions have been drawn regarding the sufficiency of these measures.