Spoofing to boost returns for clients

EVERY so often retail investors in Singapore are greeted by news of market manipulation in the capital market. The Straits Times reported on Oct 7, 2019, of two men sent to jail for spoofing in the Singapore derivatives market in 2015 and 2016.

Spoofing typically involves an investor or trader submitting orders only to withdraw them to artificially raise the volume and price for devious reasons.

In December 2022, the Singapore High Court sentenced two masterminds behind the crash of three stocks listed on the Singapore Exchange (SGX). In 2013, Blumont Group, Asiasons Capital and LionGold Corp were suspended from trading following a collapse in their share prices. This collapse was preceded by a massive increase in the share price in all three counters. When trading suspension was lifted, the three companies had lost more than 80 per cent of their market value prior to the price slump. As a result, investors suffered significant losses.