Which market abuse practice involves creating a false impression about the supply or demand of a financial instrument?

Manipulating transactions involves actions taken to create a deceptive appearance regarding the supply or demand for a financial instrument. This practice can include buying or selling in a manner that misleads other market participants, often leading investors to believe there is greater interest or activity surrounding a security than actually exists. Such manipulation distorts the true market dynamics, impacting the pricing and perceived value of the financial instrument involved.

Insider dealing refers to trading based on material non-public information, which does not directly relate to artificially altering supply or demand perceptions. Market flooding, while an activity that may create an oversupply of assets, isn't specifically recognized as a distinct category in market abuse. Price fixing involves colluding to set prices at a certain level, which also doesn't directly create false impressions about supply or demand as manipulating transactions does. Thus, manipulating transactions is the most direct practice related to creating deceptive impressions in the market.