The ASX has rules for the computerised traders and rules for the...

The ASX has rules for the computerised traders and rules for the rest of us.

Here is a list of the ASX's unacceptable market practices. As you can see, computerised traders violate pretty much every one of these rules but are allowed to get a away with it... But if you happen to get a 'hot tip' from a friend and act on it, you will end up in front of a judge.

Placing an order, with no intention of the order trading (and then cancelling or amending the order, so that it will not trade, when it nears the price limit last set). If you don?t want the order to trade, don?t place it! Similarly, don?t place an order simply to ?test the market?, unless you intend for it to trade at the price limit you?ve set.

Layering of bids (also known as ?order stacking?) ? placing
buy orders at various price steps below the market to create
a false appearance of buying demand.

Entering large or undisclosed orders on the opposite side of
the market to that in which a genuine order is to be
executed.

Closing the market, by buying or selling quantities of
securities just before the market closes, at a price that will set the last sale price (either at an increased, reduced or same price - and therefore be the value used for your holdings ? especially for small volumes).

Placing orders to deliberately increase or decrease the last
sale price.

Placing orders where the same party is buyer and seller of
the same security ? execution of such orders will raise the
question of whether the transactions involve a change of
security.

Placing an order to sell or buy securities where you know
that an associate has made or intends to make a corresponding offer to buy or sell the same securities on substantially the same terms. These are also known as ?matched orders?.

Placing orders that are uncommercial (e.g. small value;
brokerage may be higher than trade value).

Placing orders, then cancelling them within a few minutes of
entry without apparent reason (at any time, but especially
prior to the market open, just after market open, or in the
period before or during ASX?s daily Closing Single Price
Auction).