False positives can occur when:

1. Market conditions change suddenly (e.g., sudden news events, flash crashes)

2. Trading activity is legitimate but unusual (e.g., large orders, sudden changes in market sentiment)

3. Technical issues or data errors occur (e.g., connectivity problems, data feed errors)

4. New trading strategies or algorithms are deployed (e.g., legitimate but unusual trading patterns)

5. Market participants react to external events (e.g., geopolitical events, natural disasters)

To recognize potential false positives, analysts consider factors such as:

1. Market context (e.g., news, events, market conditions)

2. Trading activity surrounding the alert (e.g., order book dynamics, trading patterns)

3. Trader history and behavior (e.g., legitimate trading activity, no history of manipulation)

4. Multiple alerts triggered by the same activity (e.g., indicating potential manipulation)

5. Additional market data (e.g., social media, news sentiment)

By recognizing potential false positives, analysts can:

1. Reduce unnecessary investigations

2. Minimize disruptions to legitimate trading activity

3. Improve the accuracy of surveillance systems

4. Enhance market trust and integrity

5. Optimize resources and focus on legitimate manipulation cases

By carefully evaluating alerts and considering the context, analysts can effectively identify and dismiss false positives, ensuring that surveillance efforts remain focused on legitimate market manipulation.