Retail trader convicted in SFC’s false trading prosecution
Executive Summary
The Securities and Futures Commission (SFC) has convicted a retail trader for false trading in the shares of six Hong Kong-listed companies, highlighting the importance of market integrity and the need for firms to monitor and prevent such activities. The conviction demonstrates the SFC's commitment to enforcing securities laws and protecting market participants. Firms should review their trading practices and ensure they have adequate controls in place to prevent false trading.
What Changed
The SFC has successfully prosecuted a case of false trading under section 295 of the Securities and Futures Ordinance, which constitutes an offence.
Action Required
- Implement or review existing controls to detect and prevent false trading, including monitoring for suspicious trading patterns such as 'scaffolding' and wash trades
- Provide training to trading staff on the risks and consequences of false trading
Key Dates
Non-Compliance Risk
Enforcement action, fines, and reputational damage may result from non-compliance with securities laws and regulations related to false trading.
Who is Affected
Related Regulations
Summary
No description available.