Mismarking

Mismarking is deliberately recording the value of a position or portfolio asset away from what it is worth, to hide a loss, inflate reported performance or raise pay and fees. It should not be confused with marking a sell order long or short under Regulation SHO.

manipulation techniques · updated 2026-09-20

Where does mismarking come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Mismarking — Mismarking is deliberately recording the value of positions or portfolio assets away from what they are worth, to hide losses, inflate a fund's reported performance or raise pay and fees, without any trade in the open market.

Enforcement actions involving these techniques

See also

• Mark to market — Marking to market is valuing a position at current market prices. Because it converts a price into reported profit, collateral and…
• Marking-to-model — Marking to model values a position using a valuation model rather than an observed price, which is unavoidable for illiquid instru…
• Net asset value — Net asset value is the per-share value of a fund's holdings. For funds holding illiquid or stale-priced assets, the inputs to net …

Terms that refer here

Level 3 asset

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