I liak bo kew (don't understand) what the offence was (based on report below). Anyone can explain?
Propriety trader guilty of price manipulation
By Shaffiq Alkhatib | Posted: 30 May 2011 1850 hrs
SINGAPORE: A proprietary trader pleaded guilty on Monday to manipulating the price of CapitaMall warrants traded on the Singapore Exchange.
Forty-four-year-old Sim Tee Yang, who is from CIMB-GK Securities, admitted to four charges while eight remaining ones will be taken into consideration during sentencing.
Sim, who has been a proprietary trader since 1994, committed the offence between May and August 2005.
But in December 2005, the Commercial Affairs Department received information that Sim may have manipulated CapitaMall Trust units and CapitaMall warrants.
He had simultaneously traded with them even though he knew that the share price of one would be affected by the other.
The court heard that even though Sim lost nearly S$8,700 on the trading of CapitaMall Trust units, he made more than S$25,000 when he traded with CapitaMall warrants.
He netted a profit of more than S$16,000 in the process.
Sim can be jailed up to seven years for each charge, fined a maximum of S$250,000 or both.
Not sure if he works this way, hehe actually I have thought of doing this but I have no capital and was wondering if its illegal
Say he bought put warrants, he expect the market price to fall in the future.
So he bought x lots of shares over a period of time.
During a lull period, when volume is very low, he can psuh down the price of the shares but selling to the sellers at lower price.
For this to work, the market must be very quiet, if a strong buyer comes in and offsets his selling then kaput, double whammy....
But manipulating capitalmall trust, he must be super rich la. I thought this might only happen to penny stocks... I mean those less than 50 cents ones........
Another one from CIMB.....
This one a simple case, don't understand why MAS whacked him.
Benjamin Wong Chow Lin, formerly a trading representative and head of business development for corporate broking at CIMB Securities, has been fined S$50,000 by the Monetary Authority of Singapore (MAS) for share price manipulation under the Securities and Futures Act (SFA).
According to a statement released yesterday by the MAS, Wong had attempted to maintain or inflate the closing price of Singapore-listed Heng Long International (HLI).
On 39 days between Aug 1, 2008 and Feb 28, 2009, Wong bought one to three lots of HLI shares near the close of trading, with the intention of marking the closing price of HLI shares to exceed the last traded price. As a result of his trades, HLI shares closed at between one and 15 bids, or between 1.8 per cent and 36.4 per cent above the preceding traded price.
According to the statement, Wong did not appear to have profited directly from his trades but he admitted that he intended to maintain or inflate the closing price of HLI shares to impress clients to whom he had promoted the stock during its initial public offering and who had subscribed to the placement shares through him.
Besides the fine, Wong is banned from acting as a trading representative for one year and from taking part in the management of any holder of a capital market services licence or any person exempt under section 99 (1) of the SFA in Singapore for two years.
The MAS enforcement is a civil penalty action that does not attract criminal sanctions.
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