An investigation by the French regulator Autorité des marchés financiers (AMF) has found evidence of market manipulation in connection with shares and warrants of certain companies.

It said the actions of the group “constituted manipulative behaviour involving false or misleading information, the fixing of a price at an abnormal or artificial level, and the use of fictitious device or any other form of deception or contrivance.”

The manipulative trading took place outside normal market operating hours and generally followed the same pattern:

• One of the individuals placed an order to influence the share price.
• This would result in a drop in the prices offered on the call or put warrants for the stock in question.
• A call or put warrant was then purchased by one of the group.
• The initial order would be cancelled.
• The quotation range for the share would return to its initial level.
• Another order would then be placed to influence the share price.
• This would result in an increase in the prices offered on the call or put warrants.
• The call or put warrant was then sold at the artificially inflated price.
• The second order would then be cancelled and the quotation range would once again return to its previous level.

This multi-step operation was repeated approximately 250 times between January 2018 and January 2021. And the group, together, made profits of about €113,000 ($116,000) as a result.

The French regulator held that one of the individuals was guilty of price manipulation, with the other two individuals acting as collaborators.

The individuals have the right to appeal the AMF’s decision.