ASIC bans former financial adviser for market manipulation
ASIC has banned Tony Davidof, a former financial adviser, from providing financial services for three years.
An ASIC investigation found that Mr Davidof engaged in manipulation of the price of MINI warrants issued by Credit Suisse, commonly called “MINIs”. MINIs are a type of derivative product traded on the ASX.
ASIC found that on 21 February and 3 June 2013, Mr Davidof took part in back-to-back buy and sell trades in MINIs on ASX with a former employee of Credit Suisse after the pair had pre-arranged the price, volume and approximate timing of the trade. On each occasion, in the preceding days, the former employee had traded SPI Futures on behalf of Mr Davidof resulting in a loss (in February) and a profit (in June) for Mr Davidof.
ASIC found that the prices at which Mr Davidof and the former employee arranged to trade MINIs were designed to transfer the profit/loss from all the preceding trading, without reflecting the SPI Futures that were actually traded. This was likely to have the effect of creating an artificial price for trading in the affected MINIs on ASX.
Mr Davidof has the right to appeal to the Administrative Appeals Tribunal for a review of ASIC’s decision.
Source: ASIC – ASIC bans former financial adviser for market manipulation
