10/07/2009 - 12:34

Tricom hit with record $1.35m fine

10/07/2009 - 12:34

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Stockbroking firm Tricom Equities has been slapped with a record $1.35 million fine for "blatant and unmistakable" market manipulation spanning three years.

Stockbroking firm Tricom Equities has been slapped with a record $1.35 million fine for "blatant and unmistakable" market manipulation spanning three years.

The Disciplinary Tribunal within the Australian Securities Exchange (ASX) found that Tricom had broken ASX operating rules 10 times from late 2005 to October 2008.

The Tribunal said the breaches ranged from "Tricom's inability to meet its payment obligations within the time required through to blatant and unmistakable market manipulation".

"Tricom's contravening conduct had the potential to seriously undermine the integrity of the market and the level of sanction must take that into account," the Tribunal said.

"The events have potentially corroded market confidence and require the imposition of the maximum financial penalty.

"The result is that Tricom has been fined a total of $1,350,000 plus GST - a record amount."

Separately, Tricom received an $800,000 fine in relation to settlement and capital liquidity failures, $500,000 for manipulative trading and $50,000 for failing to settle certain transactions.

The Tribunal said Tricom did not dispute the facts and did not contest the contraventions.

It added that it took into account that Tricom had been sanctioned in the past for previous breaches to ASX operating rules and a new management team that was eager to reform previous practices.

Tricom was recapitalised late last year and rebadged as StoneBridge Group.

 

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