Interpositioning Law and Legal Definition
Interpositioning occurs when the specialist trades on his proprietary account between orders; i.e., instead of matching a suitable buy and sell order, he fulfills the sell order by purchasing for his own account, then fulfills the buy order by selling from his account, with the objective being to make a profit based on a discrepancy between the sale prices. [United States v. Finnerty, 2006 U.S. Dist. LEXIS 72119 (S.D.N.Y. Oct. 2, 2006)].
In interpositioning, instead of pairing off two pending buy and sell orders, the specialist trades twice, buying the stock from one public customer and then selling it to the other, in order to capitalize on the slight pricing differences between the matching orders. As a result, at least one of the public customers involved in the transaction receives a less advantageous price than he or she otherwise would have received. [United States v. Bongiorno, 2006 U.S. Dist. LEXIS 24830 (S.D.N.Y. May 1, 2006)].
Legal Definition list
- Interposition Doctrine
- Interpolated Terminal Reserve
- Interpol Red Notice
- Interpol Notices
- Interpretatio Chartarum Benigne Facienda Est, Ut Res Magis Valeat Quam Pereat
- Interpretatio Fienda Est Ut Res Magis Valeat Quam Pereat
- Interpretatio Talis In Ambiguis Semper Fienda Est Ut Evitetur Inconveniens Et Absurdum
- Interpretative Rule
- Interpreted Testimony