Independent price verification
Independent price verification is the process in which a control group separate from the trading desk tests the desk's marks against outside prices, such as vendor or dealer quotes, and asks for adjustments when they differ by more than a set tolerance.
Where does independent price verification come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Infinity Q Capital Management, LLC (mismarking, 2023) | SEC | 2023-06-16 | Mismarking | — | settled |
| SEC v. Infinity Q Diversified Alpha Fund (mismarking, 2022) | SEC | 2022-11-10 | Mismarking | — | settled |
| SEC v. Scott Lindell (mismarking, 2022) | SEC | 2022-09-30 | Mismarking | — | settled |
| CFTC v. Swap Dealer (mismarking, 2022) | CFTC | 2022-09-06 | Mismarking | $2.8m | judgment |
| SEC v. Semper Capital Management, L.P. (mismarking, 2020) | SEC | 2020-04-28 | Mismarking | $375k | settled |