SPOOFING IN THE BRAZILIAN CAPITAL MARKETS: A LAW AND ECONOMIC PERSPECTIVE

Authors

DOI:

https://doi.org/10.12662/2447-6641oj.v20i34.p142-163.2022

Keywords:

capital markets, microstructure, spoofing, price manipulation, law & economics

Abstract

Context: This article analyzes the first spoofing conviction issued by CVM through Administrative Proceeding no 19957.005977/2016-18. Spoofing is a new form of manipulation of the price of securities in the Capital Market characterized by the insertion of artificial purchase and sale orders, which are cancelled after thousandths of a second, but which change the trading price. However, the difficulty in characterizing the conduct and the specificities of high-frequency trading point to the risk of not obtaining adequate enforcement by CVM.

Objective and Methodology: In this context, based on the deductive method and bibliographic review, the structure of the capital market is evaluated from the dissemination of high-frequency trading under the perspective of the literature about Market Microstructure. Thus, it will be possible to analyze the CVM's ability to deter spoofing. The Law and Economics literature will be used to determine if the standard of punishment by CVM in the case is capable of generating deterrent conduct and, in general, effective gains for the Brazilian capital market.

Conclusion: There is a need for development of the subject in Brazil to provide the necessary deterrent power.

Author Biographies

Vinícius Klein, Universidade Federal do Paraná - UFPR

Doutor em Direito Civil pela UERJ Doutor em Desenvolvimento Econômico pela UFPR. Visiting Scholar na Universidade de Columbia/EUA em 2012 Procurador do Estado do Paraná Professor Adjunto no Departamento de Economia da UFPR lecionando a disciplina de Economia e Direito no curso de graduação em economia e de Economia e Estado no mestrado profissisonal em desenvolvimento econômico

Samanta Fontana dos Santos, Universidade Federal do Paraná - UFPR


Consultora de Comércio Exterior. Mestranda no Mestrado Profissional em Economia na Universidade Federal do Paraná. Pós-graduada no MBA em Comércio Exterior e Negócios Internacionais da Universidade Positivo. Bacharel em Comércio Exterior pela Universidade Positivo.  

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Published

2022-03-29

How to Cite

KLEIN, Vinícius; SANTOS, Samanta Fontana dos. SPOOFING IN THE BRAZILIAN CAPITAL MARKETS: A LAW AND ECONOMIC PERSPECTIVE. Revista Opinião Jurídica (Fortaleza), Fortaleza, v. 20, n. 34, p. 142–163, 2022. DOI: 10.12662/2447-6641oj.v20i34.p142-163.2022. Disponível em: https://periodicos.unichristus.edu.br/opiniaojuridica/article/view/3990. Acesso em: 13 dec. 2024.

Issue

Vol. 20 No. 34 (2022)

Section

Artigos Originais

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