Overview

When you sign up for a trading account with Wealthsimple, you agree to avoid participating in any trading methods the Canadian Investment Regulatory Organization (CIRO) considers manipulative or misleading. These methods include:

• Creating orders on the marketplace (a buy or sell of a security) that creates or could create a false or misleading appearance of trading activity.
• An activity that could create an artificial price for a security.

For more details about these methods, review the Universal Market Integrity Rules (UMIR) PDF.

Manipulative or misleading trading examples

Examples of trading activities that are not allowed include:

• Wash trades
  A wash trade is a transaction made in the market that results in a security having no change in beneficial or economic ownership. When an individual transacts with the same security between other accounts they own, they may perform a transaction with themselves, which can result in misleading information about the volume of a security.
• Layering
  Layering is when you place a legitimate order on one side of the market and then place several fake orders on the other side of the market without the intention to trade to try and influence the stock price for your legitimate order.
• Quote stuffing
  Quote stuffing involves entering trades in the market to intentionally flood the system in order to manipulate the price of the security.
• Spoofing
  Spoofing involves entering orders you don't intend to execute before the markets open to try and change the opening price to your advantage.

Frequently asked questions