CIMB-GK Securities trading representative fined S$50,000 for false trading

[Keiji Maeda]

CIMB-GK Securities trading representative fined S$50,000 for false trading
By Mustafa Shafawi | Posted: 22 September 2010 1746 hrs
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SINGAPORE : CIMB-GK Securities trading representative Melvin Tan has been fined S$50,000 for contravening false trading provisions under the Securities and Futures Act.

The Monetary Authority of Singapore (MAS) said Mr Tan's Capital Markets Services representative licence will also be suspended for three months.

MAS said that on 11 August 2009, Mr Tan had placed four sell orders for a total of 275,000 Singapore Petroleum Company shares in the last five minutes prior to the close of the trading session, with no intention to fulfil the orders.

Instead, Mr Tan's intention was to create the appearance of a large supply of shares on sale in the market and thereby discourage potential sellers from placing further sell orders.

Seconds before the close of the trading session, Mr Tan deleted three of the sell orders.

By discouraging potential sellers from entering further sell orders, MAS said Mr Tan sought to achieve a higher selling price for his remaining sell order than what he may otherwise have been able to achieve.

The profit earned from the trades was about S$3,800.

MAS said Mr Tan had fully cooperated with MAS in the course of the investigation and has admitted to civil penalty liability.

He has paid the S$50,000 to MAS without court action. - CNA/ms