Investigation Initiated by AMMC
The Moroccan Capital Market Authority (AMMC) has embarked on a comprehensive investigation following the identification of highly suspicious trading activities concerning various stocks. Significant buying and selling orders placed by individuals online, which lack any economic justification, have resulted in artificial fluctuations in stock prices, enabling rapid gains for certain investors. This report is based on coverage by the daily newspaper Assabah.
Alarming Trading Patterns Detected
Recently, the AMMC's market surveillance team raised concerns over unusual trading patterns that indicated potential market manipulation. According to the Assabah report, the regulators stated, “The stock market watchdogs have been compelled to initiate a thorough inquiry to ascertain the precise nature of these transactions and the identities of the entities involved. Particular attention has been directed towards irregular movements that have influenced the value of specific financial securities targeted by these trades.”
Internal sources referenced by Assabah indicate that the investigation is focusing on behaviors that resemble attempts to manipulate stock prices through the execution of unreliable trading orders. These trades were reportedly initiated independently by individuals using online platforms. The inquiry was triggered shortly after the AMMC’s internal services, particularly the Market Surveillance Directorate, discovered glaring contradictions during trading sessions.
In the initial phase, massive selling orders led to a sudden and artificial decline in the prices of certain stocks. Subsequently, other entities entered the market to issue substantial buy orders for the same securities, which mechanically contributed to a dramatic rise in their prices. “These operations were followed by a new wave of sales, enabling the involved parties to achieve considerable profits within a very short period,” noted Assabah.
These price fluctuations have been noted to lack any objective economic or financial data, raising serious questions regarding the true nature and motivations behind these transactions. Consequently, the parties involved are now under scrutiny as part of an accountability procedure. The oversight work relies predominantly on the analysis of market indicators, including transaction volumes, operation notifications, the evolution of held assets, and the meticulous monitoring of financial flows that have been settled or suspended.
At the same time, regulators are meticulously examining all accounting and administrative documents held by the companies and financial institutions implicated in the inquiry. This step aims to verify the exact nature of the transactions involving the targeted stocks and to uncover any organic connections or interests linking the buyers and sellers.
“In this context, investigators have already conducted extensive inquiries within the very headquarters of the concerned entities. They have also held four formal hearing sessions to gather explanations from the individuals involved and to clarify the ambiguities surrounding these repeated operations that have destabilized stock prices,” wrote Assabah.
The investigation continues to actively seek to identify all ramifications related to these buying and selling orders that have caused turbulence in certain stock values, which are now formally suspected of constituting violations of market manipulation laws. At the conclusion of this investigation phase, the Disciplinary Board will submit its report and advisory opinion to the presidency of the AMMC, which holds the final decision-making authority. Depending on the severity of the established facts, the AMMC may impose administrative sanctions, order the suspension of the implicated party's case, or even forward the dossier to the general prosecutor's office if the actions observed carry criminal implications. The final decision rendered by the authority's presidency must align with the opinion expressed by the Disciplinary Board.
As reported by fr.le360.ma.
