Five trading reps fined, suspended for creating false market

Singapore

THE Disciplinary Committee (DC) of the Singapore Exchange (SGX) has slapped fines ranging from S$35,000 to S$180,000 on five trading representatives (TRs) for their respective roles in the creation of a false market in the trading of Far East Group and Zhongmin Baihui Retail Group (ZMBH).

In its accompanying Regulator's Column, SGX also said the market should not automatically assume that all cases of "layering" or pre-arranged trading would lead to regulatory action, and gave details of the factors it considers when deciding when it should take action relating to a false market, among which is a guideline of whether the volume involved exceeds 30 per cent of the total order or traded volume, and whether the activity lasts for a prolonged period.