Futures manipulator sentenced to community service
The Securities and Futures Commission (SFC) has issued a press release informing as follows:
The Eastern Magistrates’ Court today sentenced a futures trader, Mr Ernest Fan Kwong Hung, to 200 hours of community service and fined him $59,430 for manipulating the final calculated opening prices (COP) of index futures contracts in the futures market.
Fan was found guilty on 30 April 2014 of six counts of false trading in the Mini-Hang Seng Index futures contracts between 25 January 2010 and 31 March 2010 following an investigation by the Securities and Futures Commission.
The court found that, on each of the six trading days, Fan placed a series of limit and auction orders in the Mini-Hang Seng Index futures contracts during the morning Pre-Market Opening Period with the intention, or being reckless as to whether, they had the effect of creating a false or misleading appearance with respect to its final COP (Note 1).
The Magistrate also made a cold shoulder order against Fan, prohibiting him from directly or indirectly, in any way acquire, dispose of or otherwise dealing in any futures contracts in Hang Seng Index or Mini-Hang Seng Index in the Pre-Market Opening Period for six months without the leave of the court in Hong Kong.
Note:
(1) Please see the SFC’s press release dated 30 April 2014.
Source: SFC
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