11 June 2012
Rollover overdue trades got dealer's representative fined RM 10,000 and reprimanded
Bursa Malaysia Securities Bhd has publicly reprimanded a dealer's representative Peer Mohd Abdul Aleez and also fined him RM10,000 for false trade trading activities.
It said on Monday that Peer Mohd was also suspended for three months for false trading activities involving the securities of Excel Force MSC Bhd and LNG Resources Bhd in his two clients' accounts.
It said Peer Mohd, was a commissioned dealers' representative of Inter-Pacific Securities Sdn Bhd at its Johor Bahru branch when he committed the offences.
Bursa Securities said he had executed trades in the securities of Excel Force and LNG in his two clients' accounts, which did not involve any change in the beneficial ownership.
He had first entered sell orders in his clients' accounts. Within a short span of time, most of which were less than a minute, he had entered the corresponding buy orders for the same clients' accounts to buy from the sell orders entered by him earlier, resulting in the matching of his buy and sell orders.
It said Peer Mohd executed the trades to rollover the trades to the next trading cycle to prolong the holding period. In some instances, he had executed trades to rollover all overdue trades to the next trading cycle, which were repeated in the clients' accounts for several months.
Bursa Securities said although these trades were not significant vis-a-vis the overall market impact and/or price impact, his false trading was to maintain or raise the prevailing market price of the two counters.
"His actions gave rise to the false or misleading appearance of the securities, and did not reflect the fair and orderly dealing activities," it said.