Published Paper Details:

The financial markets have undergone a revolution due to the swift development and extensive use of algorithmic trading, which has brought forth a plethora of novel prospects and difficulties. This study explores the complex legal ramifications of algorithmic trading strategies, focusing on spotting and preventing possible market manipulation. Fairness and transparency are fundamental issues that legal scholars, practitioners, and legislators must address because they are ingrained in the intricate algorithms that drive trading strategies. In order to provide a fundamental knowledge of the environment around algorithmic trading and its confluence with market manipulation, this study starts with a thorough analysis of the body of prior research, including academic and legal sources. The study finds weaknesses and shortcomings in the current legal frameworks regulating algorithmic trading through a rigorous assessment. Analyzing the potential legal ramifications of algorithmic trading techniques is at the center of the research. The study examines situations in which algorithmic trading has been connected to market manipulation using case studies and actual evidence. The vulnerabilities in the current regulatory framework are brought to light by this research, which also emphasizes how urgent it is to resolve these problems in order to preserve the integrity of the financial markets. Based on this analysis, the study suggests a set of legislative protections designed to deal with the difficulties brought about by algorithmic trading. Striking a careful balance between encouraging financial market innovation and guarding against manipulative tactics is the goal of these protections. The guidelines provide a sophisticated approach that supports accountability, transparency, and justice while considering the complexities of algorithmic trading methods. Examined closely is the effectiveness of the current regulatory frameworks in reducing the hazards related to algorithmic trading. The identification of obstacles and weaknesses in these frameworks establishes the foundation for the ensuing legislative safeguard proposal. The study explores the need for international collaboration and possible standardization to successfully handle cross-border issues as it relates to algorithmic trading. In the latter section of the study, implementation issues are discussed, acknowledging that realizing the benefits of legal safeguards necessitates overcoming real-world challenges. The discourse extends to technological implications, possible opposition from market players, and the necessity of cooperative endeavors between regulatory agencies and industry partners. The research concludes in a set of best practices and case studies by leveraging insights from successful regulatory activities across countries. For governments tasked with preserving justice and openness in the age of algorithmic trading, these real-world instances provide insightful lessons. In summary, this study adds a comprehensive examination of the legal ramifications of market manipulation to the continuing conversation over algorithmic trading. Considering changing algorithmic trading techniques, the suggested legal safeguards offer guidance to legislators, regulatory agencies, and legal professionals that wish to strengthen and modify the regulatory framework to maintain equitable and transparent financial markets.