Mr Lam Lok Yin sentenced to community service and fined for manipulating Callable Bull Bear Contracts

On 28 June 2011, the SFC reported that Mr Lam Lok Yin to had been sentenced to 120 hours of community service after he pleaded guilty to manipulating four Callable Bull Bear Contracts (CBBCs) during the pre-opening session (POS) between 18 May and 16 July 2009.

Lam was also ordered to pay a total fine of $89,100 and $60,007 investigation costs to the SFC. The fine amounts to the total net profit earned by him in carrying out the manipulation.

An SFC investigation found that, on four occasions between 18 May and 16 July 2009, Lam raised the indicative equilibrium price (IEP) of four CBBCs by artificially placing auction orders and limit orders at escalating prices during the POS.

Further details are available here.