Futures Trader Acquitted of Price Manipulation Charges

On 20 January 2010, the SFC reported that the Eastern Magistracy had acquitted a futures trader, Mr Tsoi Bun, of five charges of manipulating the calculated opening prices (COP) of index futures contracts in the futures market.

Tsoi was charged following an investigation by the SFC that revealed manipulation of the COP of futures contracts during the morning Pre-Market Opening Period on five trading days between 14 February 2007 and 25 September 2007.

However, Deputy Magistrate Mr Thomas Chan ruled that there was insufficient evidence to prove beyond reasonable doubt that Tsoi had manipulated the COP on each of the trading days in question.

The SFC is still deciding whether to appeal the decision.

This is the first criminal prosecution for market manipulation in Hong Kong’s futures market under the Securities and Futures Ordinance (SFO).

In addition to the criminal charges, the SFC sought orders in the High Court to stop Tsoi from placing orders on the futures market during the Pre-Market Opening Period. Tsoi has given the court an undertaking that he will not place any order held in his name or in the name of another person on the futures markets during the Pre-Open Allocation Sessions

For further information please see Tsoi Acquittal

Update on Tuesday, February 2, 2010 at 6:09AM by Kathryn Mathers

On 1 February 2010, the SFC reported that it had filed an application to the Eastern Magistracy requesting Deputy Magistrate Mr Thomas Chan to state a case for a review to the High Court