Maintaining Integrity in our Capital Markets
The vibrancy of Singapore’s capital markets depends on investor confidence that markets operate fairly, that prices reflect genuine supply and demand and material information is disseminated accurately and on a timely basis. Market misconduct undermines these principles and distorts market outcomes. MAS will take enforcement action to hold wrongdoers accountable and deter misconduct.
A common feature in market abuse cases is the use of trading accounts belonging to others to conceal beneficial ownership, profits or nefarious trading activity. Rather than trading through accounts in their own names, wrongdoers obscure their involvement by utilising accounts of family members, friends, employees, associates or their nominees.
Cases at a glance
MAS took enforcement actions against a market manipulator and also a trading representative who facilitated or turned a blind eye to the use of nominee accounts.
Use of Nominee Accounts in False Trading Scheme
A market manipulator used 13 trading accounts of friends and associates to execute large volumes of trades and create the false appearance that multiple market participants were actively buying and selling shares.
Unauthorised Trading by a Trading Representative
MAS issued a 1-year prohibition order against a trading representative who, on the instruction of a third-party, executed trades in three trading accounts to manipulate the share prices of a particular counter. For his unauthorised trading offences, the individual paid a civil penalty of $65,000 under a settlement agreement with MAS.