(Recasts, adds Select Vantage details and background)
TOKYO Feb 18 Japan's Securities and Exchange
Surveillance Commission said on Tuesday it has uncovered a
manipulation scheme involving nearly 90 Japanese stocks by
traders from Anguilla-based company Select Vantage Inc.
The watchdog recommended fining the firm 60,000 yen ($590)
after discovering attempts to manipulate the price of shares in
Torishima Pump Mfg Co and Hoshizaki Electric Co Ltd
by placing large buy orders and cancelling them before
they could be executed.
A total of 88 stocks saw similar manipulative trading, the
SESC said. The trades took place in April 2012.
Fines in Japan for financial regulatory violations are very
low by global standards, although reputational damage can be a
major concern for penalised institutions.
Select Vantage is a proprietary trading firm registered in
the Caribbean island of Angullia. It employs more than 2,750
traders in over 230 locations in China, Europe and Latin
America, the SESC said.
The company was set up in 2011 by taking over the trading
system and traders from Canadian firm Swift Trade, which was
penalised over wrongdoing and lax control by authorities in the
United States, the United Kingdom and Canada in 2011 and 2012.
($1 = 101.9050 Japanese yen)
(Reporting by Noriyuki Hirata and Taiga Uranaka; Editing by
Jacqueline Wong and Miral Fahmy)