According to MAR's Commission Delegated Regulation (EU) 2016/522 of 17/Dec/2015, creating a floor [ceiling] is whenever a participant makes transactions or enters orders in such a way that obstacles are created to avoid or try to avoid that prices fall below [rise above] a certain level.
Who creates floors [ceilings]?
Potentially, the usual suspects (executives, employees with stock compensation, large shareholders, port-folio managers, derivative-holders and any other person/entity that can benefit from a change in the security’s price).
I guess it can occur both in illiquid and liquid markets. However, the higher the liquidity, the higher are the necessary volumes to be traded and/or order by the manipulator.
Example 1
The manipulator starts buying a security aggressively whenever the price falls close to a certain level (in this case 1.00€).
Example 2
The manipulator starts selling a security aggressively whenever the price rises close to a certain level (in this case 1.00€).
Example 3
The manipulator enters a set of considerably large buy orders around a certain price level to curb a fall in the security price.
Example 4
The manipulator enters a set of considerably large sell orders at around a certain price level to curb a rise in the security price.
Example 1
Example 2
Example 3
Example 4
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