algo trading issues, page-6

Supperpaddy,

Rule 5.7.1 of the ASIC Market Integrity Rules (ASX Market) 2010 prohibits all Market Participants from creating a false or misleading appearance with respect to the market for any Product.

Maximum penalty $1,000,000

http://www.comlaw.gov.au/Details/F2013C00192/Html/Volume_1#_Toc345410679

As I read it rule 5.7.1 applies to everybody. Under Part 1 of the rules, ASIC can issue written waivers to the integrity rules, however I doubt and would be very surprised if rule 5.7.1 could be waived or exempted under any circumstances.

If somebody did actually place an order yesterday on the ASX trading platform to buy 15.8 million GBG shares (when the total buy volume including this order was about 23 million shares) for 0.1 cents each (total cost $15,800) when the shares were trading at 11 cents each, anybody should be entitled to ask ASIC to investigate the circumstances behind the placing of the order, and in particular the reason behind the placing of the order.

There may well be legitimate reasons for the placing of such an order or the order appearing on the trading platform, however, on the face of it, it is hard for the common retail investor to think of any reason other than that the order was placed to try and create a false appearance in the market for GBG shares.

There is no point in constantly complaining about ASIC and ascribing guilt to institutions and the like for perceived market manipulation. If you have a legitimate concern about a trade or order that has been placed, inform ASIC. If you don’t get a response or get fobbed off or get told that ASIC doesn’t have the resources to investigate every enquiry or you get a response that you are unhappy with then then come to this forum to complain and whinge (or bring the matter up with your local federal representative).