While algorithmic trading improves liquidity and narrows spreads, it also introduces risks of market abuse and manipulation that can distort prices and undermine market integrity.
Primary Prohibited Market Behaviors
  Abusive Behavior Type |   Primary Operational Mechanic   |   Market Integrity Damage Focus
------------------------+----------------------------------+---------------------------------------
  Spoofing Scenario     | Floods non-bona fide orders      | Distorts the public limit order book
  Front-Running Loops   | Intercepts large pending orders  | Arbitrages client trades illegally
  Wash Trading Systems  | Trades assets between own nodes  | Creates false trading volume indicators

Central banks and market watchdogs enforce strict market abuse regulations to monitor, flag, and penalize these disruptive behavioral patterns, protecting the transparency of electronic FX marketplaces.
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