Financial crime case

I believe that there is total corruption in the financial markets and that the dealers (Stock brokers, Forex companies, Financial spread betting companies investment bankers etc.) are involved in making prices, meaning it is a serious fraud. I believe that they have the power to change prices for their benefit according to the actions of the majority and on occasion to target individuals, regardless of what should be happening logically in the market. there is an absolute lack of regulation leaving them free to steal large amounts of money from people in a ridiculous fashion, as if it is justified. meaning that effectively they are simply stealing the money from their clients.

My opinion is that the people in charge of the financial markets have long term plans, but in the short term, dealers have a lot of control over prices to chase stops and get people on margin to loose their clients money. This also logically explains market volatility. Financial trading is actually like a tax, taking power (in the form of money) from powerless people. Therefore it is something the government has no incentive to regulate properly (The FSA is set up by the government).

I have also had many positions, with stop loss levels attached, that have been closed when the price only reaches my personal chosen stop level and then retreats back in the opposite direction after my position is closed (see evidence below). I call this process 'spiking'. To happen once is strange and unlikely. To happen over 10 times is evidence of fraud. It is worth considering the probability of this occurring if the people responsible for making prices do not target individuals stop levels. -Very unlikely. Therefore the obvious conclusion is that the people responsible for making prices do target individuals stop levels. The next step would be to consider the moral implications of dealers chasing traders stop levels and loosing their clients money. This would make it a serious financial crime/fraud. The concept of having a stop loss level for positions is to limit the amount people loose if prices move against their favour. However, dealers know where peoples stops are and see 'chasing stops' as an easy and ideal opportunity to loose people money. Most spread betting companies make it compulsory to include a stop level with every trade.

I have tried to investigate the process of making prices by myself but it is impossible since people involved will not tell anyone significant information about the system or give any names. They will only give a false explanation that does not prove anything. However, I recently contacted IG index to ask if they contact market makers as part of their everyday business activity and I was told by Alex Moore, client services manager that yes they do.

I contacted the Financial Services Authority to conduct an investigation into the subject and discover who is responsible for making prices and what influences them. Although they are currently dealing with the request, they have told me that they do not usually inform people of their response, so in theory they don't have to do anything and there is nothing individuals can do apart from complain against the FSA. It seems as though the whole system relating to the financial markets is rigged and untouchable and that the only way to achieve justice may be by gaining as much public support as possible, and using the media to support a court claim.

Aim:

Investigate the process of making prices for Stocks shares, Indices, Commodities, and Exchange rates and any other financial instruments. Discover who is responsible and what influences them. Discover if stockbrokers, financial spread betting companies, forex dealers, have direct or indirect control of prices.

Initiate a reform of the financial markets systems and improve regulation. Prices should be based on actual results and statistics (which must also be closely regulated) and calculated as a result. Therefore prices will relate directly to fact, as opposed to opinion, making the system clearer and decreasing volatility of prices.