Friday 29 Mar 2024
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KUALA LUMPUR (Oct 12): Bursa Securities has publicly reprimanded Wong Min Jun, as well as ordered him to pay a RM20,000 fine for engaging in manipulative trading activities in the securities of Lay Hong Bhd.

Wong is also suspended for three months from being a registered person of Bursa and is required to undergo training on conduct or professionalism of dealer’s representatives (DRs)/market offences.

In a statement today, Bursa said Wong was at the material time of the breach a salaried dealer’s representative of Mercury Securities Sdn Bhd at its Kuala Lumpur branch office.

He had contravened and/or triggered the provisions of Rules 3.14(d), (e) & (g) and 5.01(b) of the Rules of Bursa Malaysia Securities and paragraph 1.1(1)(h) of Directives No. 5-001 of the Participating Organisations’ Directives and Guidance (POs’ Directives).

According to the regulator, the breaches by Wong were in relation to his manipulative trading activities in the securities of Lay Hong through a client’s account over a period of time.

This involved the repetitive execution of increasing bid trades (IB trades) that drove up or maintained Lay Hong share price at certain levels through the entry of buy orders at prices higher than the prevailing market prices in the client’s account

The breaches also involved the execution of marking the close trades (marking the close activities) through the entry of buy orders at prices higher than the last traded price which resulted in the closing price of Lay Hong shares to either surge and close at the day high or at a price higher than the last traded price.

"The constant buying at higher prices towards the end of the trading day in the marking the close activities had interfered with the genuine market forces of supply and demand," it said.

Bursa added that the manipulative trading activities by Wong had dictated the direction of Lay Hong’s share price and consequently caused the share price to close higher or prevented the price from closing lower; and had influenced the closing price of Lay Hong, thus giving rise to the creation of a misleading appearance in the price of the securities.

“Bursa places a strong emphasis on the need to maintain a fair and orderly market and will not tolerate any acts or practices which could lead to false trading, manipulative activities and/or compromise the integrity of the market," the regulator said.

"Bursa will not hesitate to take appropriate actions against anyone who engages in such misconduct, which commensurate with the severity of the breach, including suspension/striking off a registered person from the register and imposition of fines," it added.

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