Leading experts from academia and industry in the analysis of financial fraud, misconduct, and market manipulation convened at Lancaster University for an international conference.

The first Financial Fraud, Misconduct and Market Manipulation (FFMM) Conference was held on September 12th and 13th, 2024, organised by Lancaster University Management School’s (LUMS) Centre for Financial Econometrics, Asset Markets and Macroeconomic Policy (EMP). The event brought together scholars and practitioners to discuss the latest research, trends, and challenges in the field of financial misconduct.

More than 40 attendees shared their ideas on a wide array of topics, including insider trading, market manipulation in equity and options markets, banks’ response to misconduct and biases and discrimination in the financial advisor sector, machine learning and AI tools for manipulation detection, information disclosure, cryptocurrency markets, climate and ESG issues, and managerial incentives and misconduct.

Professor Olga Kolokolova, Chair in Finance at the Accounting and Finance Department at LUMS, remarked: “It has been a pleasure to host such a distinguished group of experts here at Lancaster. The exchange of ideas between researchers and practitioners tackling different forms of financial misconduct is vital for advancing our understanding and developing strategies to combat financial fraud and make the markets better, safer, and fairer for everyone.”

The keynote addresses provided both academic and regulatory perspectives:

Professor Alan Jagolinzer from Cambridge Judge Business School opened the conference with his talk on “Manipulative Influencers and Systemic Risks,” asking thought-provoking questions on the impact of influential figures from business and politics on market integrity, incentives to commit financial crimes and a new framework for interventions to combat it.

Simran Singh and Efthymios Rizopoulos, representatives from the Innovation Department of the Financial Conduct Authority (FCA) delivered a talk on “AI in Combatting Complex Market Abuse,” discussing how artificial intelligence is being leveraged to detect and prevent sophisticated market manipulation.

On Friday the 13th, Professor Utpal Bhattacharya of the Hong Kong University of Science and Technology shed light on “The Dark Side of Investments,” offering insights into the less known aspects of investment practices and their broader implications, from insider trading around the world to return smoothing by hedge funds, conflicts of interest and their implications in mutual fund families to superstition-driven trading. These often-hidden financial practices need to be uncovered and understood to protect investors and market integrity.

The event fostered an environment of collaboration and knowledge sharing, with participants engaging in thought-provoking discussions and networking opportunities, paving the way for future collaborations and initiatives.

The FFMM Conference organizing committee, Professor Olga Kolokolova, Professor Igor Goncharov, Professor Ingmar Nolte, Professor Sandra Nolte, Professor Grzegorz Pawlina, and Teresa Aldren, extends heartfelt thanks to all speakers, participants, and supporters who contributed to the success of the conference.