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FSB fines trader R2m

Mar 08 2017 18:08

Johannesburg - The Financial Services Board (FSB) said on Wednesday that it has fined Robert Fourie R2m for contravening the Financial Markets Act (FMA).

The Directorate of Market Abuse had referred a case against Fourie to the Enforcement Committee after investigations revealed he created a deceptive appearance of trading activity and an artificial price.

It relates to a Sunflower futures contract (SUNS contract) from 20 September 2013.

At the time Fourie was a securities dealer at ICAP Securities South Africa, an authorised user of the JSE.
On certain days in June and July 2013, Fourie traded with himself in the SUNS contract that resulted in no beneficial change of ownership in the contracts.

According to the FSB, these trades created a deceptive appearance that the SUNS contract was actively traded and created an artificial price for the SUNS contract.

The Enforcement Committee has accordingly imposed an administrative penalty of R2m together with a costs order on Fourie for contravening Section 80(1)(a) of the FMA.

The Enforcement Committee took into account as an aggravating factor that Fourie, in his position as a dealer, was required to act as a “gatekeeper” and prevent entering trades on the exchange that were manipulative. Instead he executed manipulative trades in breach of this duty.

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