ASEAN KEY DESTINATIONS
MAS Takes Civil Penalty Action and Issues Prohibition Order Against
Mr Lee Wee Soon for False Trading and Market Manipulation Singapore, 24 July 2013… The Monetary Authority of Singapore (MAS) has taken civil penalty enforcement action against Mr Lee Wee Soon for contravening sections 197(1)(b) and 198(1) of the Securities and Futures Act (SFA), which prohibit false trading and market manipulation, respectively.
2 On 25 March 2008, Mr Lee, a remisier with UOB Kay Hian Pte Ltd, entered five buy orders through his personal account for shares in Cosco Corporation (S) Ltd
(Cosco), during the Singapore Exchange Securities Trading Limited’s Pre-Open Phase.
The buy orders were priced between $3.38 and $3.48, totaling 1.1 million shares, and represented 62.7% of all buy order quantities queuing at the 20 best bid
prices of Cosco shares at the material time. Concurrently, Mr Lee also placed a sell order for 100,000 Cosco shares at $3.35. Mr Lee deleted the buy orders just before
the opening price for Cosco shares was determined at 8:59 a.m.
3 Mr Lee has admitted to contravening sections 197(1)(b) and 198(1) of the SFA by placing buy orders to raise the indicative opening price of Cosco shares
during the Pre-Open Phase and thus induce other persons to purchase Cosco shares when the market opened at 9 a.m. Mr Lee had no intention of fulfilling the buy orders
but had entered them to create a favourable environment to fulfill his sell order at $3.35. His actions resulted in a profit of $3,645.
4 Mr Lee has paid a civil penalty of $50,000 to MAS without court action. MAS has also issued an order against Mr Lee prohibiting him, for a period of 1 year,
from (i) conducting business in any regulated activity or acting as a representative in respect of any regulated activity; and (ii) taking part in the management of any holder
of a capital market services licence or any person exempt under section 99(1) of the SFA in Singapore.
5 Mr Lee Chuan Teck, Assistant Managing Director of the Capital Markets Group, MAS, said: “The Pre-Open and Pre-Close Phases were introduced to
increase efficiency, market integrity and transparency. It is important that the orders are genuine. Actions that create a false or misleading appearance as to the market,
or are taken to manipulate the opening and closing prices, are offences under the SFA
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