Executive Summary
Part I: Factors Contributing to the Need for the Review
18. Part I of the document considers the major factors which have driven the need for the review. These include developments in technology and international developments.
Part II: What Is Meant by Market Manipulation and Should it Be Regulated?
19. Part II considers what constitutes market manipulation, the incidence of market manipulation and the arguments for and against regulating to prevent it. It also draws the distinction between disclosure based and trade based market manipulation and outlines the different types of disclosure and trade based manipulation practices that can occur.
Part III: Description of New Zealand Law as it Applies to Market Manipulation
20. Part III of the document outlines the current market manipulation law in New Zealand under legislation such as the Securities Act 1978, the Fair Trading Act 1986 and the Crimes Act 1961.
Part IV: The Content of a Market Manipulation Regime
21. Part IV considers the possible content of a market manipulation regime and seeks comment on various approaches to formulating a regime. It identifies four areas where further market manipulation law could be introduced and seeks comment about whether short selling should be regulated as part of a market manipulation regime. Part IV also discusses whether the Securities Commission should have a civil enforcement role in relation to market manipulation.
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