All industry participants (including FP Markets) have a legal obligation to ensure that the underlying markets are fair, orderly and transparent.
As FP Markets hedges its exposures to clients trades with its hedging counterparty(s) and that hedging counterparty(s) hedges its exposure to FP Markets in the underlying exchange market (where an exchange does exist), FP Markets clients should be aware that some trading practices by them can constitute market manipulation (as the trades are ultimately replicated in the underlying market by our counterparty).
Manipulating the market through creating a false or misleading market as regards price or the appearance of active trading is conduct prohibited under the Corporations Act. It is the client’s responsibility to be aware of unacceptable market practices and the legal implications. The “Market misconduct and other prohibited conduct” provisions are contained in Part 7.10 of the Corporations Act. These include the insider trading prohibitions.
It is recommended that clients read through the guidelines set out by ASIC and the ASX to understand the rules and potential consequences of breaching such rules. The below links will take you to the specific documents for ASX Trading.