Futu and Tiger's penalty announcements showed abnormal volume increases in put options beforehand, raising market suspicion of possible "front-running" behavior.

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BlockBeats News, May 23 — According to publicly available options data platforms and market information, before the China Securities Regulatory Commission announced on May 22 its intention to impose administrative penalties on cross-border internet brokers such as Futu and Tiger Securities, the number of put options traded for Futu and Tiger stocks in the US market showed abnormal volume on May 7, 19, and 21 respectively.

The highest trading volume occurred before the official announcement. StreetInsider indicated at 09:57 Eastern Time on May 21 that abnormal put option trading appeared for FUTU and TIGR; ThetaOwl data also showed that the put/call volume ratio for Futu options expiring on May 22 was significantly higher on May 21.

Some market opinions suggest that these abnormal movements may indicate that funds had already begun positioning in the short side before the news was publicly announced, raising questions about "front-running" or pre-trade manipulation.

FUTU-27.71%
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GateUser-739338fe
· 4h ago
This timeline is too coincidental; it started increasing volume on the 7th. You’re well-informed.
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AirdropOnTheDune
· 4h ago
The regulatory arbitrage space for cross-border brokers is shrinking, and they will have to pay it back sooner or later.
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TheSolitaryRockBehindThe
· 4h ago
If the data from StreetInsider is confirmed, then the problem is serious.
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SudoSoul
· 4h ago
Even niche data sources like ThetaOwl can be uncovered; people monitoring the market are really meticulous.
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GateUser-57ab9c02
· 4h ago
May 7th? That's even earlier than the 19th. How strong must the channel be?
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Low-PolyEarth
· 4h ago
Let's wait for the official announcement from the CSRC; right now, it's all speculation.
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