TI-Wash Trading Supplementary Report

As a supplementary report to the “Wash Trading Research”, this paper is intended to provide another way to qualitatively determine the credibility of the reported trading volume. This paper conducted the Benford’s Law compliance test and the Last digit Distribution test on 19 exchanges. There are 5 test indicators in total. If a certain exchange passes most indicators (3 or more), it is considered to have a low wash trading percentage. Among the 19 exchanges, 12 exchanges passed 3 indicators or more; the other 7 exchanges only passed less than 3 indicators, which are considered to have high wash trading percentages.